Hospitality & Tourism , assignment #3

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C h a p t e r 6

the restaurant Business

L E A r N i N G o B J E C T i V E S

after reading and studying this chapter, you should be able to:

• Discuss the significance of classical cuisine.

• Identify food trends and practices.

• Describe the different characteristics of franchise, chain, and independent restaurants.

• Summarize menu planning.

• Identify some of the top chain and independent restaurants.

• Name the classifications of restaurants.

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the restaurant Business restaurants are a vital part of our everyday lifestyles; because we are a society on the go, we patronize them several times a week to socialize as well as to eat and drink. restaurants offer a place to relax and enjoy the company of family, friends, colleagues, and business associates and to restore our energy level before heading off to the next class or engagement. actually, the word restaurant derives from the word restore. today, there are more than 990,000 restaurants in the United States, with sales of $683.4  billion and 13.5 million employees (marking the restaurant business as the largest employer apart from the government!). the restaurant industry’s share of the food dollar has risen to 47 percent. On a typical day, restaurant industry sales average $1.8 billion.1

as a society we spend an increasing amount, approaching 50 percent, of our food dollar away from home. restaurants are a multibillion-dollar indus- try that provides employment and contributes to the nation’s social and eco- nomic well-being. No discussion of restaurants can continue without talking about the main ingredient: food. So, let’s take a brief look at our culinary heritage.

classical cuisine North america gained most of its culinary legacy from France. two main events were responsible for our culinary legacy coming from France. First was the French revolution in 1793, which caused the best French chefs of the day to lose their employment because their bosses lost their heads! Many chefs came to North america as a result, bringing with them their culinary talents. the second event was when thomas Jefferson, who starting in 1784 spent five years as envoy to France, brought a French chef to the White house when he became president. this act stimulated interest in French cuisine and enticed U.S. tavern owners to offer better quality and more inter- esting food.

No mention of classical cuisine can be made without talking about the two main initiators: Marie-antoine Carême (1784–1833), who is credited as the founder of classical cuisine, and auguste escoffier, who is profiled later in this chapter. Carême was abandoned on the streets of paris as a child, and then worked his way up from cook’s helper to become the chef to the prince de talleyrand and the prince regent of england. he also served as head chef to the future King George IV of england, tsar alexander of russia, and Baron de rothschild. his goal was to achieve “lightness,” “grace,” “order,” and “perspicuity” of food. Carême dedicated his career to refining and orga- nizing culinary techniques. his many books contain the first really system- atic account of cooking principles, recipes, and menu making.2

the other great contributor to classical cuisine, auguste escoffier (1846– 1935), unlike Carême, never worked in an aristocratic household. Instead, he held forth in the finest hotels of the time: the place Vendôme in paris and the Savoy and Carlton hotels in London. escoffier is noted for his many con- tributions to cuisine, including simplifying the Grand Cuisine of Carême by

LearNING OBJeCtIVe 1 Discuss the significance of classical cuisine.

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reducing the number of flavors and garnishes and even simplifying the num- ber of sauces to five “mother” or leading sauces. escoffier brought simplicity and harmony to the Grand Cuisine. his many cookbooks are still in use today: Le Guide Culinaire (1903) is a collection of more than 5,000  classic cuisine recipes; in Le Livre des Menus (1912), he compares a great meal with a symphony; and Ma Cuisine (1934) contains more than 2,000 timeless recipes. all of his books emphasize the importance of mastering the tech- niques of cooking.3

this is an exciting time to be involved in the culinary arts and restaurant industry. Not only are new restaurant concepts and themes to fit a variety of tastes and budgets appearing on the scene, the culinary arts are being devel- oped by several creative and talented chefs. It is important to realize that in this industry, we are never far from food. So, let’s take a look at the recent development of culinary arts.

the main “ingredient” in a restaurant is cuisine, and one of the main foundations of classical French cooking, on which much of american cuisine is based, is the five mother sauces: bechamel, velouté, espagnole, tomato, and hollandaise. these elaborate sauces were essential accompaniments for the various dishes on the menu. Until about 1900, all menus were written in French—some still are—and regardless of whether a person was dining in a good hotel or restaurant in London or Lisbon, the intention was that the dish should be prepared in the same manner and taste similar to the French version. the travelers of the day either spoke French or had a knowledge of menu French.

Classical French cuisine was the norm until the late 1960s and early 1970s, when nouvelle cuisine became popular. Nouvelle cuisine is a lighter cuisine than the classical French and is based on simpler preparations—with the aid of processors, blenders, and juicers—using more natural flavors and ingredients. Instead of thickening a sauce with a flour-based roux, a purée of vegetables could be used instead. Fresh is in, and this includes herbs for flavor. Nouvelle cuisine combines classical techniques and principles with modern technology and scientific research. “Simpler, quicker” quickly became more stylish, with plate presentation becoming a part of the chef’s art. North american cooking had arrived. the bounties of Canada and the United States provided the basis for regional cuisine to flourish nationally. Fusion, the blending of flavors and techniques from two cuisines, became popular. For example, New england and Italian or Californian and asian cui- sines can be blended, or a Japanese recipe might be blended with a Mexican one to create a new hybrid recipe.

Many great chefs have influenced our recent culinary development. among them are Julia Child, whose television shows did much to take the mystique out of French cooking and encourage a generation of homemak- ers to elevate their cooking techniques and skills. More recently, anthony Bourdain’s No Reservations and Parts Unknown along with andrew Zimmern’s Bizarre Foods garnered the public’s interest by combining culi- nary delicacies with travel to unique and exotic locations, while Food Network personalities like emeril Lagasse, Bobby Flay, Guy Fieri, adam richman, and robert Irvine have popularized cooking and the gourmand lifestyle with shows that range from uncovering the hottest Diners, Drive-Ins

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and Dives to giving failing restaurants a complete makeover in just a few days. additionally, programs like Chopped and Cutthroat Kitchen have also become popular.

Culinary schools have done an excellent job of producing a new genera- tion of chefs who are making significant contributions to the evolving culi- nary arts. For example, alice Waters, chef/owner of Chez panisse in Berkeley, California, is credited with the birth of California cuisine. Waters uses only fresh produce from local farmers. paul prudhomme is another contemporary chef who has energized many aspiring chefs with his passion for basic cook- ing, especially Cajun style.

Charlie trotter, former chef/owner of Charlie trotter’s in Chicago, was considered by many to be one of america’s finest chef/owners and king of fusion. he has said in one of his books:

After love there is only cuisine! It’s all about excellence, or at least work- ing towards excellence. Early on in your approach to cooking—or in run- ning a restaurant—you have to determine whether or not you are willing to commit fully and completely to the idea of the pursuit of excellence. I have always looked at it this way: if you strive for perfection—an all out assault on total perfection—at the very least you will hit a high level of excellence, and then you might be able to sleep at night. To accomplish something truly significant, excellence has to become a life plan.4

Chef trotter brought his knowledge and exposure together into a coher- ent view on what the modern fine-dining experience could be. he said, “I thought the blend of european refinement regarding the pleasures of the table, american ingenuity and energy in operating a small enterprise, Japanese minimalism and poetic elegance in effecting a sensibility, and a modern approach to incorporating health and dietary concerns would encompass a spectrum of elements through which I could express myself fully. Several years later, I find I am even more devoted than ever to this approach.”5 Charlie trotter tragically died of a stroke at the age of 54.

▶ check Your Knowledge

1. Discuss the significance of classical cuisine.

2. From which country did america gain most of its culinary legacy?

Food trends and Practices as the level of professionalism rises for the chef of the twenty-first century, chefs will need a strong culinary foundation with a structure that includes multicultural cooking skills and strong employability traits, such as passion, dependability, cooperation, and initiative. additional management skills include strong supervisory training, sense of urgency, accounting skills,

LearNING OBJeCtIVe 2 Identify food trends and practices.

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sanitation/safety knowledge, nutritional awareness, and marketing/merchan- dising skills.

Not only are trans fats banned from many city menus but, according to the National restaurant association’s (Nra) research, nearly three out of four americans say they are trying to eat more healthfully in restaurants than they did two years ago. the healthyDiningFinder.com Web site is a great resource for those looking to make smart choices when dining out.6 among the early program members are arby’s, p. F. Chang’s, Buca di Beppo, Cracker Barrel, round table pizza, el pollo Loco, and Famous Dave’s. Several other

i n t r O d u c i n g a u g u s t e e s c O F F i e r ( 1 8 4 6 – 1 9 3 5 ) 7

“emperor of the World’s Kitchens”

Auguste Escoffier is considered by many to be the patron saint of the professional cook. Called the “emperor of the world’s kitchens,” he is considered a reference point and a role model for all chefs. His exceptional culinary career began at the age of 13, when he appren- ticed in his uncle’s restaurant, and he worked until 1920, and retired to die quietly at home in Monaco in 1935. Uneducated, but a patient educator and diligent writer, he was an in- novator who remained deeply loyal to the regional and bourgeois roots of French cookery. He exhibited his culinary skills in the dining rooms of the finest hotels in Europe, including the Place Vendôme in Paris and the Savoy and Carlton hotels in London.

When the Prince of Wales requested something light but delicious for a late dinner after a night in a Monte Carlo casino, Auguste Escoffier responded with Poularde Derby, a stuffed chicken served with truffles cooked in champagne, alternating with slices of butter-fried foie

gras, its sauce basted with the juices from the chicken and truffles. Another interesting anecdote regarding the chef’s originality in making sauces tells of a special dinner for the Prince of Wales and Kaiser Wilhelm. Escoffier was asked to create a special dish to honor such an occasion. Struggling with an apparent loss of creativity until the night before the event, the chef finally noticed a sack of overripe mangos, from which he created a sauce that he personally came out from the kitchen to serve. As he placed the plate on the table, he looked at the Kaiser and with a wicked smile said, “zum Teufel”—to the devil. Thus was born sauce diable, today a favorite classic sauce. Escoffier’s insistence on sauces derived from the cooking of main ingredients was revolutionary at the time and in keeping with his famous instruction: faités simple—keep it simple.

In fact, in his search for simplicity, Escoffier reduced the complexity of the work of Carême, the “cook of kings and king of cooks,” and aimed at the perfect balance of a few superb ingredients. In Le Livre des Menus (1912), Escoffier makes the analogy of a great dinner as a symphony with contrasting movements that should be appropriate to the occasion, the guests, and the season. He was meticulous in his kitchen, yet wildly imagina- tive in the creation of exquisite dishes. In 1903, Escoffier published Le Guide Culinaire, an astounding collection of more than 5,000 classic cuisine recipes and garnishes. Throughout the book, Escoffier emphasizes technique, the importance of a complete understanding of basic cookery principles, and ingredients he considers essential to the creation of great dishes.

Escoffier’s refinement of Carême’s grande cuisine was so remarkable it developed into a new cuisine referred to as cuisine classique. His principles have been used by successive generations, most emphatically by the novelle cuisine brigade. Francois Fusero, chef de cuisine at the Hotel Hermitage, Monte Carlo, and many others, regard Escoffier as their role model.

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In the restaurant industry, the front-of-house and back-of-house operations are all about striving to provide high levels of guest satisfaction through consistency of products and customer service delivered. Over the years, technology has provided operators with the tools to offer a quicker and more consistent operation, which on the surface may seem simpler, but technology also has provided an expansion of the ways that consumers think about restaurant products and customer service. In this section, we will explore some of the newest and trendi- est front-of-house, back-of-house, and guest experience technology and what this means for both restaurant operators and consumers in the fast-paced and ever-changing restaurant industry.

Some of the most popular guest experience technological advancements in the restaurant industry include smartphone apps and mobile payment. Recent studies have been conducted estimating that more than 30 per- cent of consumers would prefer to pay their restaurant bill with a mobile payment option rather than a physical credit/debit card or the cash payment option. The increase in consumer dependency on smartphone devices has forced restaurants to implement the capability to accept mobile payments.8 Additionally, technology at the table allows consumers to order food and drinks from a tablet or kiosk provided by the restaurant, and, in some cases, directly from their smartphone. This front-facing technology allows for less wait time at the restaurant, which is desired by the current and future generation of consumers, as well as a decrease in wages spent by the restau- rant, which is beneficial to the operator.

Tablet technology is on the rise, and this once experimental technology, first introduced by trendy and inde- pendent restaurant concepts, such as Carmel Kitchen & Wine Bar, is constantly gaining momentum and is now in the process of being implemented by larger restaurant chains, such as Applebee’s, Chili’s, and Buffalo Wild Wings. Additionally, some fast casual and quick-service restaurants (QSRs), such as Pizza Hut and Chipotle, are beginning to test out touch screen and tablet technology and will begin efforts to implement this technology into their operations in the near future. Tablet technology has been named one of the hottest current trends in the industry by the National Restaurant Association, and it could potentially transition from a trend to a stan- dard restaurant operational component in years to come.9

Smartphone apps are constantly gaining in popularity as more companies begin creating their own apps. Some of the most popular apps and reasons for consumers downloading apps include the following:

• Locating a restaurant or making a reservation (OpenTable, Urbanspoon, MenuPages) • Reading reviews about restaurants (Yelp, TripAdvisor, Citysearch) • Looking up the health content of menu items (HealthyOut, Gluten Free Fast Food) • Promotions and discounts (LivingSocial, Groupon) • Delivery services (Delivery.com, GrubHub, Seamless) • Payment apps (PayPal, BarTab)10

These apps are helpful for both the consumer, because they provide quick reference points for easy dining out information, and for the operator, because they assist with promoting the restaurant and providing customer feedback on the dining experience.

POS (point of sale) systems are continuously increasing in capability with each model that is released into the market. The number of companies offering POS products is rapidly growing and with the current techno- logical developments in the restaurant industry, there is much more to consider now with regard to payment processing, management features, and customer care when investing in a new POS system. For example, when

t e c h n O L O g Y s P O t L i g h t

restaurant technology: Front-of-house, Back-of-house, and Guest experience

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considering payment processing, which is the most fundamental component of a POS system, it is important to consider whether the system supports most types of payments, mobile payments, online ordering, and bank association. Newly implemented management features can now support inventory and vendor data, loyalty pro- grams, employee and customer profiles, remote access, and online store integration. Additionally, it is important to consider fees associated with POS systems, including monthly subscription fees, PCI compliance fees, and hardware support fees. Finally, POS systems are now produced in a variety of hardware formats for mobile or tablet products.11

One of the biggest technological buzzwords in the restaurant industry right now is “big data,” which essentially refers to the large amount of data created from the restaurant’s internal sources such as the POS sys- tem, kitchen inventory and revenue software, or other software used by the restaurant, as well as outside data sources (social media, Internet sites, or other sources providing information about or regarding the restaurant). Restaurants are currently attempting to combine the internal and external data to take full advantage of track- ing marketing dollars spent, controlling costs, increasing revenue, and enhancing the overall dining experience.12 Internet sites for companies like eBay, Amazon, and Overstock.com use big data to track online search and buying patterns, which allows them to make recommendations and suggestions for products and services using predictive analytics.13

The combination of internal and external technology use provides restaurateurs with the means to determine where to focus investing money to increase their brand perception, achieve operational efficiency, or enhance their product and service offerings. Ultimately, the decision to use this array of technology depends on the restaurant concept, customer demographics, and market competition, among other factors. With the constant increase in technology, fast paced industry, and wealth of information provided to consumers, it can be difficult to determine what is most important to enhance the customer experience and most often requires conducting significant market research. However, new technology also provides an opportunity for restaurateurs to experi- ment with new ideas, and with luck, they could be the first to implement the next big trend in the industry.

restaurants are removing additives from ingredients used in menus and some are avoiding genetically modified organisms (GMOs).

the term back-to-basic cooking has been redefined to mean taking clas- sical cooking methods and infusing modern technology and science to create healthy and flavorful dishes. Some examples of this include the following:

• thickening soups and sauces by processing and using the food item’s natural starches instead of traditional thickening methods

• redefining the basic mother sauces to omit the béchamel and egg-based sauces and add or replace them with coulis, salsas, or chutneys

• pursuing more cultural culinary infusion to develop bold and aggressive flavors

• experimenting with sweet and hot flavors

• taking advantage of the shrinking globe and disappearance of national borders to bring new ideas and flavors to restaurants

• evaluating recipes and substituting ingredients for better flavor; that is, flavored liquid instead of water, infused oils and vinegars instead of nonflavored oils and vinegars

• Substituting herbs and spices for salt

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• returning to one-pot cooking to capture flavors

• Offering more healthy dining choices in restaurants

today, being a chef is considered a profession that offers a variety of opportunities in every segment of the hospitality industry and anywhere in the world.

culinary Practices In this new millennium, we are seeing culinary education setting the pace for dining exploration.14 as you prepare for a career in the hospitality indus- try, you will find it imperative that you develop a strong culinary foundation. Within the structure of this you will need to develop cooking skills, strong employability traits, people skills, menu development skills, nutrition knowl- edge, sanitation/safety knowledge, accounting skills, and computer skills.

Before you can become a successful chef, you have to be a good cook. to be a good cook, you have to understand the basic techniques and prin- ciples of cooking. the art of cooking has not changed much in thousands of years—we still use fire for cooking; grilling, broiling, and simmering are still popular methods of cooking. however, science and technology have allowed us to improve the methods of food preparation.

to become a successful chef, you will need to learn all of the basic cook- ing methods in order to understand flavor profiles. as you look at recipes to cook, try to enhance the basic ingredient list to improve the flavor. as an example, always try to substitute a flavored liquid if water is called for in a recipe. It is also important to understand basic ingredient flavors so that you can improve flavor. the idea behind back-to-basic cooking means you evalu- ate your recipe and look for flavor improvement with each item.

employability traits are those skills that focus on attitude, passion, ini- tiative, dedication, sense of urgency, and dependability. these traits are not always traits that can be taught, but a good chef can demonstrate them by example. Most of the employers with job opportunities for students consider these skills to be more important than technical skills. the belief is that if you have strong employability traits, your technical skills will be strong.

One of the most important things to realize about the restaurant industry is that you can’t do it alone. each person in your operation must work with each of the others for you to be successful. the most important ingredient in man- aging people is to respect them. Many words can be used to describe a man- ager (coach, supervisor, boss, mentor), but whatever term is used, you have to be in the game to be effective. Managing a kitchen is like coaching a football team—everyone must work together to be effective. the difference between a football team and a kitchen is that chefs/ managers cannot supervise from the sidelines; they have to be in the game. One of my favorite examples of excel- lent people management skills is that of the general manager of a hotel who had the ware-washing team report directly to him. When asked why, he indi- cated that they are the people who know what is being thrown in the garbage, they are the people who know what the customers are not eating, and they are the people most responsible for the sanitation and safety of an operation. there are many components to managing people—training, evaluating, nur- turing, delegating, and so on—but the most important is respect.

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i n t r O d u c i n g r i c h a r d M e L M a n

Chairman of the Board and Founder, Lettuce entertain You enterprises, Inc.

Richard Melman is founder and chairman of Lettuce Entertain You Enterprises, a Chicago- based corporation that owns and licenses over 100 restaurants nationwide.

The restaurant business has been Melman’s life work, beginning with his early days in a family-owned restaurant and later as a teenager working in fast-food eateries and a soda fountain and selling restaurant supplies. After realizing that he wasn’t cut out to be a college student and failing to convince his father that he should be made a partner in the family business, Melman met Jerry A. Orzoff, a man who immediately and unconditionally believed in Melman’s ability to create and run restaurants. In 1971, the two opened R.J. Grunts, a hip burger joint that soon became one of the hottest restaurants in Chicago. Here, Melman and Orzoff presented food differently and with a sense of humor, creating the youthful and fun restaurant that was a forerunner in the trend toward dining out as enter- tainment that swept this country in the early 1970s.

Melman and Orzoff continued to develop restaurant concepts together until Orzoff’s death in 1981. Through his relationship with Orzoff, Melman formulated a philosophy based

on the importance of partners, of sharing responsibilities and profits with them, and of developing and growing together.

To operate so many restaurants well, Lettuce has needed to hire, train, and develop people, and then to keep them happy and focused on excellence. Melman’s guiding philosophy is that he is not interested in being the biggest or the best known—only in being the best he can be. He places enormous value on the people who work for Lettuce Entertain You Enterprises and feels tremendous responsibility for their continued success.1 Melman says, “We hire people with creativity, passion, and the drive to be the best. That’s the idea behind all of our restaurants, with authentic, ethnic concepts ranging from five-diamond French to upscale Italian, from Spanish Tapas to quick-serve Asian.”

Today, he has 40 working partners, most of whom came up through the organization, and has 7,000 people working with him. Over the years, Melman has stayed close to the guests by using focus groups and frequent- diner programs. “We’ve had the ability to give people what they want almost before they know they want it. You can call it trendsetting. I prefer to call it the ability to listen to people.”2

The group’s training programs are rated among the best in the business, and Melman’s management style is clearly influenced by team sports. He says, “There are many similarities between running a restaurant and a team sport. However, it’s not a good idea to have 10 all-stars; everybody can’t bat first. You need people with similar goals—people who want to win and play hard.”3 He places enormous value on the approximately 7,000 people who work for Lettuce Entertain You, and feels tremendous responsibility for their continued success. Melman’s commitment now is to develop the young leaders of Lettuce to ensure that the company will be around for another 43 years. Melman’s personal life revolves around his family. He and his wife Martha have been married for 39 years and have three children who are now successful restaurateurs themselves.4

Lettuce Entertain You Enterprises

1Marilyn Alva, “Does He Still Have It?” Restaurant Business 93, no. 4 (March 1, 1994), 104–111.

4Home Page, Lettuce Entertain You Restaurants, www.leye.com (accessed February 16, 2015).

2Emily Clark, A Taste of Lettuce Entertain You 2015, Lettuce Entertain You Restaurants, http://www .leye.com. Click on News, Press Room, Press Kit (accessed February 16, 2015). 3Home Page, Lettuce Entertain You Restaurants, www.leye.com (accessed February 15, 2015).

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▶ check Your Knowledge

1. Give examples of food trends and culinary practices.

2. What were escoffier’s most important culinary contributions?

3. Describe how richard Melman became so successful in operating restaurants.

Franchises there are several major restaurant brands that utilize business format fran- chising; this includes both the product and the service. Franchising is a great method for growing a particular business to multiple locations with the same or similar products or service. this is especially true for individuals who wish to run a business but prefer not to go through the process of starting a concept from scratch.

through a contractual agreement, the franchisor grants the franchisee the rights to use their designs and plans, sell their products, and use their logos, promotional materials, and operational services. the franchisor normally supplies the operational systems, menus and recipe design, and management expertise. the franchisee must agree to maintain the standards set by the fran- chisor, who will also want the franchisee to meet the following qualifications:

1. Share their vision, mission, values, and business practices

2. have been successful in other business or aspects of life

3. have the motivation to succeed

4. have enough money

5. Be prepared to undergo training

6. have the time to devote to the franchise

the franchisee benefits by joining a proven successful restaurant con- cept, which is more likely to succeed than an unproven concept. however, the increased likelihood of success does incur costs. Franchise costs include a franchising fee, a royalty fee, and advertising royalties and requires lots of personal net worth. For example, a taco Bell franchise requires a com- mitment to build three restaurants over three years. a stand-alone restau- rant runs between $1,200,000 and $1,700,000 and does not include land or lease costs. For a Subway franchise, the estimated cost is between $101,000 and $285,000. this includes the complete investment in setting up a Subway franchise, and also operating expenses for the first three months. after open- ing, franchisees pay a royalty fee, which is 8 percent of gross sales.15 the franchisee has total responsibility for operating the restaurant, including supervision of those they may hire to manage the restaurant.

there is also a disadvantage to becoming a franchisee. Because they must adhere to the franchisor’s policies, procedures, and standards, the

LearNING OBJeCtIVe 3 Describe the different characteristics of franchise, chain, and independent restaurants.

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franchisee may feel a loss of operational independence. they may not be able to make certain business decisions, even if they think it would be better for the operation. Sometimes this loss of control by the franchisee appears too limiting, especially if they have an entrepreneurial spirit.

chain restaurants Chain restaurants are a group of restaurants, each identical in market, concept, design, service, food, and name—the largest concentration is found in the quick service segment. Chains grew out of successful independent restaurants, first into a small group, and then, often by franchising, into a concept “with legs” (as they say in the industry) that spread across several states and even- tually nationwide. Chain restaurants have proven more successful and more numerous with quick-service or fast casual concepts. a chain restaurant is owned by the parent company, a franchise company, or an independent operator sometimes called an operating partner. By the time a restaurant chain is established, the operators have figured out the best way of doing opera- tional things and can make system-wide savings in design, layout, operating methods, staffing, menus, purchasing, inventory turnover, marketing, and pro- motions. With chain restaurants most of the important managerial decisions are made at the corporate office. Suggestions and ideas do often come from the restaurants and their guests. One of the biggest challenges is to maintain high quality and consistency with the food offerings.

Being associated with a chain has several benefits. First, if managed cor- rectly, the chain can have outlets in various geographic locations. this global presence enables a chain operator to have a visible presence with a larger number of markets when compared to an independently owned and oper- ated restaurant. a larger market reach gives a chain operator the ability to use national, as well as international, forms of advertising to potential customers.

Second, a chain operation allows a parent company to have multiple streams to generate revenue. this access to cash means that chains may be able to grow more rapidly when compared to its nonchain counterparts, the independently owned and operated restaurant. this multiple revenue stream model that chain restaurants create is one of the primary reasons the foodservice segment of the hospitality industry has seen rapid growth over the past few decades.

independent restaurants Independent restaurants (also called indies) are typically owned by one or more owners who are usually involved in the day-to-day operation of the business. even if the owners have more than one store (restaurant-speak for a “ restaurant”), each usually functions independently. these restaurants are not affiliated with any national brand or name. they offer the owner inde- pendence, creativity, and flexibility, but are generally accompanied by more risk. For example, the restaurant may not be as popular as the owners hoped it would be, the owners lacked the knowledge and expertise necessary for success in the restaurant business, or the owners did not have the cash flow to last several months before a profit could be made. You only have to look around your neighborhood to find examples of restaurants that failed for one reason or another.

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▶ check Your Knowledge

1. Summarize the different characteristics of franchise restaurants.

Sustainable restaurants the average american meal has a shockingly large carbon footprint, usually traveling 1,500 miles to the plate and emitting large amounts of CO2 in the process, according to the Leopold Center for Sustainable agriculture.16 each meal created produces 275 pounds of waste a day, making restaurants the worst aggressors of greenhouse gas emissions in retail industry, says the Boston-based Green restaurant association (Gra), a nonprofit organization that works to create an ecologically sustainable restaurant industry.17

a recent Nra study shows that utility costs are a big line item for res- taurateurs, accounting for a median of between 2.3 and 3.6 percent of sales, depending on the type of operation. according to Zagat’s America’s Top Restaurants, 65 percent of surveyors said they would pay more for food that has been sustainably raised or procured. according to National restaurant association research, 62 percent of adults said they would likely choose a restaurant based on its environmental friendliness.18

Does greening a restaurant sound challenging, time-consuming, and costly? according to the Green restaurant association, it doesn’t have to be any of those things. the Gra was founded almost 20 years ago with the  mission of creating an ecologically sustainable restaurant industry, and it has the world’s largest database of environmental solutions for the restau- rant industry.19 the Gra strives to simplify things because it realizes that restaurateurs have enough on their plates without worrying what kind of paper towel to order, or where they’ll get next month’s supply of ecofriendly dish soap.20

Menu planning the menu may be the most important ingredient in a restaurant’s success. a restaurant’s menu must agree with the concept; the concept must be based on what the guest in the target market expects; and the menu must exceed those expectations. the type of menu will depend on the kind of restaurant being operated.

there are six main types of menus:

À la carte menus. these menus offer items that are individually priced.

Table d’hôte menus. table d’hôte menus offer a selection of one or more items for each course at a fixed price. this type of menu is used more

LearNING OBJeCtIVe 4 Summarize menu planning.

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frequently in hotels and in europe. the advantage is the perception guests have of receiving good values.

Du jour menus. Du jour menus list the items “of the day.”

Tourist menus. these menus are used to attract tourists’ attention. they frequently stress value and food that is quickly prepared, inexpensive, and reflective of regional tastes.

California menus. these menus are so named because, in some California restaurants, guests may order any item on the menu at any time of the day.

Cyclical menus. Cyclical menus repeat themselves over a period of time.

a menu generally consists of perhaps six to eight appetizers, two to four soups, a few salads—both as appetizers and entrées—eight to sixteen entrées, and about four to six desserts.

the many considerations in menu planning attest to the complexity of the restaurant business. Considerations include the following:

• Needs and desires of guests

• Capabilities of cooks

• equipment capacity and layout

• Consistency and availability of menu ingredients

• price and pricing strategy (cost and profitability)

• Nutritional value

• accuracy in menu

• Menu analysis (contribution margin)

• Menu design

• Menu engineering

• Chain menus

needs and desires of guests In planning a menu, the needs and desires of the guests are what is important— not what the owner, chef, or manager thinks. If it is determined that there is a niche in the market for a particular kind of restaurant, then the menu must harmonize with the theme of the restaurant.

the Olive Garden restaurants are a good example of a national chain that has developed rapidly during the past few years. the concept has been positioned and defined as middle of the road with a broad-based appeal. During the concept development phase, several focus groups were asked their opinions on topics from dishes to décor. the result was extremely successful until sales fell in 2013 and 2014. a new board will now have to set the menu.21

Several other restaurants have become successful by focusing on the needs and desires of the guest. among them are Darden restaurants, panera Bread, Chipotle, hard rock Café, Lettuce entertain You, Union Square hospitality Group, Blooming Brands, and applebee’s.

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capabilities of cooks the capabilities of the cooks must also harmonize with the menu and concept. an appropriate level of expertise must be employed to match the peak demands and culinary expertise expected by the guests. the length and complexity of the menu and the number of guests to be served are both factors in determining the extent of the cooks’ capabilities.

the equipment capacity and layout affect the menu and the efficiency with which the cooks can produce the food. Some restaurants have several fried or cold items on the appetizer menu simply to avoid use of the stoves and ovens, which will be needed for the entrées. a similar situation occurs with desserts; by avoiding the use of the equipment needed for the entrées, cooks find it easier to produce the volume of meals required during peak periods.

One of the best examples of effective utilization of menu and equip- ment is in Chinese restaurants. at the beginning of many Chinese restaurant menus, there are combination dinners. the combination dinners include sev- eral courses for a fixed price. Operators of Chinese restaurants explain that about 60–70 percent of guests order those combinations. this helps the cooks because they can prepare for the orders and produce the food quickly, which pleases the guests. It would create havoc if everyone ordered à la carte items because the kitchen and the cooks could not handle the volume in this way.

consistency and availability of Menu ingredients In the United States, most ingredients are available year-round. however, at certain times of the year, some items become more expensive. this is because they are out of season—in economic terms, the demand exceeds the supply, and so the price goes up. an example of this is when a storm in the Gulf of Mexico disrupts the supply of fresh fish and shellfish and causes an increase in price. to offset this kind of situation, some operators print their menus daily. Others may purchase a quantity of frozen items when the prices are low.

Price and Pricing strategy the target market and concept will, to a large extent, determine the menu price ranges. an example might be a neighborhood restaurant where the appetizers are priced from $3.25 and $6.95 and entrées are in the $6.95 and $11.95 price range. the selling price of each item must be acceptable to the market and profitable to the restaurateur. Factors that go into this decision include the following:

• What is the competition charging for a similar item?

• What is the item’s food cost?

• What is the cost of labor that goes into the item?

• What other costs must be covered?

• What profit is expected by the operator?

• What is the contribution margin of the item?22

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F O c u s O n n u t r i t i O n

New Frontiers in restaurant Dining

Jim Inglis, Professor, Valencia Community College, Orlando, Florida

Over the last several years we have seen a major shift in what dishes restaurants are serv- ing up. The cause for this change? Public interest, some of which is sparked by government legislation and some of which is driven by market or consumer demands. With laws now requiring restaurant chains in some states (soon every state) to disclose calorie counts and other nutritional information, restaurant companies have an opportunity to take advantage of and capitalize on this national movement—and many are.

Health-conscious consumers are demanding that companies change the way they do business; no longer does quantity always trump quality. Chains such as Chipotle, with the

slogan “Food with Integrity,”23 have been successful in marketing the qualities of healthy eating and serving animal products that do not contain growth hormones or antibiotics. Words like sustainable, eco-friendly, green, and farm-raised are the new catchphrases.

Some other chain concepts have also set their sights on nutrition by adding menu items with lower total calorie counts, sourcing more locally grown foods, and utilizing healthier cooking methods such as grilling or caramelizing vegetables in dishes rather than adding sugar. In fact, Seasons 52, of Darden Restaurants, “makes a promise that nothing on our menu is over 475 calories.”24 The result, they say, is “great tasting, highly satisfy- ing food that just so happens to be good for you!”25

There is also the new push that came from the Obama administration to change the food pyramid, improve our public school meals, and educate children on the benefits of eating healthy and exercising. The USDA’s new MyPlate icon simplifies/replaces the old food pyramid and is meant to “help consumers make healthier food choices.”26 It emphasizes the fruit, vegetable, grain, protein, and dairy food groups and clearly shows that half of what you eat every day should be fruits and vegetables. This is something that Americans as a whole are not doing, but Americans are starting to demand change.

So what role will the restaurant industry play in this paradigm shift through which the industry is going? This is not a fad or just a trend; I do believe the industry is going to have to embrace the concept of nutritional importance in selecting the items restaurants choose to put on their menus. On my recent visit to the National Restaurant Show in Chicago, there were many examples of gluten-free products, vegan dishes, vegetarian cook- ing demonstrations, and so forth. We are seeing some innovative restaurant companies already incorporating many of these ideas into their menu concepts to meet the needs of today’s consumer. The companies that posi- tion themselves correctly, and that can appeal to young and old alike, will be in a position to make substantial revenues, which equals substantial profits.

(Reprinted by permission of Jim Inglis.)

there are two main ways to price menus: a comparative approach ana- lyzes the price ranges of the competition and determines the price range for appetizers, entrées, and desserts. the second method is to cost the indi- vidual dish item on the menu and multiply it by the ratio amount neces- sary to achieve the desired food cost percentage. For example, to achieve a 30-percent food cost for an item priced at $6.95 on the menu, the food cost would have to be $2.09. Beverage items are priced the same way. this

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method will result in the same expected food cost percentage for each item. It would be great if we lived in such a perfect world. the problem is that if some items were priced out according to a 30-percent food cost, they might appear to be overpriced according to customers’ perceptions. For example, some of the more expensive meat and fish would price out at $18–$21, when the restaurant would prefer to keep entrée prices under $15. to balance this, restaurants lower the margin on the more expensive meat and fish items—as long as there are only one or two of them—and raise the price on some of the other items, such as soup, salad, chicken, and pasta. this approach is called the weighted average, whereby the factors of food cost percentage, contribution margin, and sales volumes are weighted.

Menu engineering Menu engineering is a sophisticated approach to setting menu prices and controlling costs. It operates on the principle that the food cost percentage of each menu item is not as important as the total contribution margin of the menu as a whole. Usually this means that the food cost percentage of a menu item could be larger than desired, yet, the total contribution margin of the menu will increase. through menu engineering, menu items that should be repositioned, dropped, repriced, or simply left alone can be identified.

Menu design and Layout Basic menus can be recited by the server. Casual menus are sometimes writ- ten on a chalk or similar type board. Quick-service menus are often illumi- nated above the order counter. More-formal menus are generally single page, or folded with three or more pages. Some describe the restaurant and type of food offered; most have beverage suggestions and a wine selection. the more upscale american-Continental restaurants have a separate wine list.

Some menus are more distinctive than others, with pictures of the items or at least enticing descriptions of the food. research indicates that there is a focal point at the center of the right-hand page; this is the spot in which to place the star or signature item.27

Like a brochure for the hotel, a menu is a sales tool and motivational device. a menu’s design can affect what guests order and how much they spend. the paper, colors, and artwork all play an important role in influenc- ing guest decisions and help to establish a restaurant’s image and ambiance.

as you can see, a number of factors make for a successful restaurant. help is available from the U.S. Small Business association (go to www.sba .gov and click on Learning Center in the top navigation bar), which has several courses and other information for those interested in developing a business plan for a restaurant. Now, let’s look at the classifications of restaurants.

▶ check Your Knowledge

1. Summarize menu planning.

2. Select a popular restaurant and identify its pricing strategy.

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Classifications of restaurants there is no single definition of the various classifica- tions of restaurants, perhaps because it is an evolv- ing business. Most experts would agree, however, that there are two main categories: independent restau- rants (indies) and chain restaurants. Other catego- ries include designations such as fine dining, casual dining and dinner house restaurants, family, fast- casual, and quick-service restaurants. Some restau- rants may even fall into more than one category—for instance, a restaurant can be both quick service and ethnic, such as taco Bell. Fast-casual restaurants com- bine elements of both casual dining and quick-service restaurants. this category is continuously increasing its presence of different chains and concepts. Some of the most popular include Chipotle Mexican Grill, Fire- house Subs, Five Guys Burgers and Fries, and pei Wei asian Diner.

the National restaurant association’s figures indicate that americans are spending a lot of food dollars away from home at various foodservice operations. americans are eating out up to five times a week—and on spe- cial occasions such as birthdays, anniversaries, Mother’s Day, and Valentine’s Day. the most popular meal eaten away from home is lunch, which brings in approximately 50 percent of fast-food restaurant sales.28

part of the marketing strategy of a chain restaurant is to remove uncertainty from the dining experience. the same menu, food quality, level of service, and atmosphere can be found in any one of the res- taurants, regardless of location. Large companies or entrepreneurs are likely chain restaurant owners. For example, applebee’s is a restaurant chain; some stores are company-owned, but the majority are franchised by territory.

Fine dining a fine-dining restaurant is one where a good selection of menu items is of- fered; generally at least 15 or more different entrées can be cooked to order, with nearly all the food being made on the premises from scratch using raw or fresh ingredients. Full-service restaurants may be formal or casual and may be further categorized by price, décor/atmosphere, level of formality, and menu. Most fine-dining restaurants may be cross-referenced into other categories, as mentioned previously. Many of these restaurants serve haute cuisine (pronounced hote), which is a French term meaning “elegant din- ing,” or literally “high food.” Many of the fine restaurants in the United States are based on French or northern Italian cuisines, which, together with fine Chinese cuisine, are considered by many Western connoisseurs to be the finest in the world.

Anthony Bourdain, owner and chef of Les Halles, sits at one of its tables. Bourdain is the top-selling author of Kitchen Confidential and A Cook’s Tour and is star of his own TV shows, No Reservations and Parts Unknown.

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▶ check Your Knowledge

1. Summarize menu planning.

Most fine-dining restaurants are independently owned and operated by an entrepreneur or a partnership. these restaurants are in almost every city. In recent years, fine dining has become more fun because creative chefs offer guests fine cuisine as an art. at places like Union Square Café and Gramercy tavern in New York, Danny Meyer is looking for guests who want spectacular meals without the fuss. Many cities have independent fine-dining restaurants that offer fine dining for an occasion—a birthday, an “expense account” (business entertaining), or other celebration.

Marco Maccioni, son of Sirio Maccioni of the famed Le Cirque, says that the sons did not want simply to clone Le Cirque. For the menu, they sought inspiration from mama’s home cooking—pizza, pasta, and comfortable, braised dishes.

Many cities have independent fine-dining restaurants that pursue those who are not content with wings and deep-fried cheese. Chefs are there- fore making approachable, yet provocative food; each course is expertly pre- pared and may be served with wine.

LearNING OBJeCtIVe 5 Identify some of the top chain and independent restaurants.

Pei Wei is an Asian-themed fast casual restaurant that is owned by P. F. Chang’s China Bistro, which is a subsidiary of Wok Parent LLC. Pei Wei has about 190 locations and offers a differ- ent menu and dining atmosphere than its parent company. Pei Wei utilizes counter ordering where the guest orders, pays, and then takes a number to a table so the food runner can see where to bring the order.

Chris Marrero has been with Pei Wei for six years. He trained, then became kitchen assistant manager, assistant front-of-the-house manager, and finally was promoted to gen- eral manager. He leads a team of 45 associates. Chris generally works about 50 hours a week. He  begins between 8:00 and 9:00 a.m. with a walk through the restaurant and a check of the online “red books”—an electronic logbook into which managers enter important details as a part of necessary communication. Chris will order the food, create the schedule, do inventories, and oversee the food preparation. With wok-seared cooking, everything is fresh

with supplies coming six days a week. During the early morning, Chris checks the prep list to ensure the cor- rect quantities are prepared. At 10:00 a.m. he conducts a line check where all the temperatures are checked. At 11:00 a.m. it’s “all hands on deck” and no one leaves the line until 1:00 p.m. when one or two cooks go back to prepping. At 3:00 p.m. there is another line check for temperatures and freshness. At 4:00 p.m. there is a shift change with continued prepping until 5:00 p.m. when it’s again all hands on deck. By 8:00 p.m. staff begin the breakdown of equipment and clean. By 9:30 p.m. the cash drawers are cleared and the deposits made.

a d a Y i n t h e L i F e O F c h r i s M a r r e r O

General Manager, pei Wei asian Diner

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Several types of restaurants are included in the fine-dining segment: vari- ous steakhouses, ethnic, celebrity, and theme restaurants. the upscale steak- houses, such as Morton’s of Chicago, ruth’s Chris, and houston’s, continue to attract the expense account and “occasion” diners. Naturally, they are located near their guests and in cities with convention centers or attractions that draw big crowds.

a few ethnic restaurants are considered fine dining—most cities have a sampling of Italian, French, and other european, Latin, and asian restaurants. Some even have fusion (a blend of two cuisines—e.g., Italian and Japanese). Fusion restaurants must pay particular attention when blending two unique ethnic flavors. If successful, the dish could turn out to be the latest craze; if unsuccessful, it could be disastrous!

Celebrity chef-owned fine-dining restaurants of interest include Wolfgang puck’s Spago, in four locations; Chinois in Santa Monica, California; CUt, in four locations; Wolfgang puck pizzeria & Cucina in Las Vegas; and alice Waters’s Chez panisse in Berkeley, California. Both chefs have done much to inspire a new generation of talented chefs. alice Waters has been a role model for many female chefs and has received numerous awards and pub- lished several cookbooks, including one for children.

the level of service in fine-dining restaurants is generally high, with a hostess or host to greet and seat patrons. Captains and food servers advise guests of special items and assist with the description and selection of dishes during order taking. If there is no separate sommelier (wine waiter), the cap- tain or food server may offer a description of the wine that will complement the meal and can assist with the order taking. Some upscale or luxury full- service restaurants have tableside cooking and French service from a gueri- don cart (a wheelable cart used to add flair to tableside service; it is also used for flambé dishes). the decor of a full-service restaurant is generally compatible with the overall ambiance and theme that the restaurant is seek- ing to create. these elements of food, service, and décor create a memorable experience for the restaurant guest.

celebrity restaurants Celebrity-owned restaurants have been growing in popularity. Some celebrities, such as Wolfgang puck, come from a culinary background, whereas others, such as Naomi Campbell, Claudia Schiffer, and elle Macpherson (owners of the Fashion Café), do not. a number of sports celebri- ties also have restaurants. among them are Michael Jordan, Dan Marino, John elway, and Wayne Gretzky. television and movie stars have also gotten into the act. Oprah Winfrey was part owner of the eccentric in Chicago for a number of years. She said she bought the restaurant because she liked a sandwich she had there, but was told that the place was clos- ing. So she stepped in and bought it! Matt Damon and Ben affleck once owned the Continental, and Dustin hoffman and henry Winkler were investors in Campanile, a popular Los angeles restaurant. Dive, in Century City (Los angeles),

Wolfgang Puck.

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Beth Dickinson, a food and beverage operations consultant shared her view of an exceptional dining experience in a renowned five-diamond restaurant based upon her own personal experience as a diner. Beth hoped that by describing a personal experience and sharing it with hospitality students she would be providing insights into the proper way to provide an exceptional dining experience through service.

Ms. Dickinson remarked that within 30 seconds of taking her seat the server greeted her congenially, intro- duced himself, and placed the dinner menu on the table, along with a special three-course menu. Quickly and unobtrusively the server removed the extra place settings on the table while conversing with her and inquired whether she would prefer sparkling or bottled water, then quickly returned with the consultant’s selection. The server then ascertained whether Beth would prefer a glass of wine, a cocktail, or an additional beverage and explained the specials for that evening.

Upon conversing with Ms. Dickinson, the server determined that she was uncertain whether she was interested in having a vegetarian dish, chicken, fish, or red meat, and so he suggested several of his own favorite menu items, along with a suitable wine pairing for each, from which Beth made her selections: a bison tenderloin with a cocoa espresso rub, and a red zinfandel. The server was thoughtful in inquiring about his guest’s cooking preferences for the main dish, and then suggested and described several of his favorite appetizers. Though an appetizer was declined, the server congenially removed the menus and departed, returning shortly to present a basket of warm bread and a small plate of butter, explaining that the warm cheddar biscuits were freshly baked in-house.

Delivering the entrée and wine 15 minutes later, the server explained the items on the plate, ensured that nothing else was needed and wished his guest an enjoyable meal. The server returned during the meal to con- duct a quality check, thus ensuring that the meal was to the consultant’s liking and refilling the water glass, which was three-quarters empty.

Once the meal was finished, the server promptly removed the soiled dishes and asked if Ms. Dickinson would like to see a dessert menu, offering a description of his favorite dessert item, the chocolate lava cake. The offer was declined, and the server departed and quickly returned with the check, wishing his guest “a wonderful evening,” thanked her for coming, and asked her to “please return soon.” Beth remarked upon this dining expe- rience as one that “exceeded my expectations and provided me with my most memorable dining experience.”

h O w t O P r O v i d e a n e x c e P t i O n a L d i n i n g e x P e r i e n c e

Courtesy of James McManemon, MS University of South Florida Sarasota–Manatee

Sarah Stegner opened Prairie Grass Café in Northbrook, Illinois, with her partner, former executive chef George Bumbaris of the Ritz-Carlton Chicago, in 2004. A little history… .

Stegner, an Evanston, Illinois, native, grew up in a family devoted to food. Her grandmother was a caterer “before women did those kinds of things,” and her grandfather was an avid backyard vegetable gardener. The table was the center of the family and was where Stegner’s passion for food emerged.

i n t r O d u c i n g s a r a h s t e g n e r

Chef–Owner, prairie Grass Café

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After a year spent studying classical guitar at Northwestern University, Stegner followed her heart and en- rolled at the Dumas Pere cooking school. She graduated with a chef’s certificate one year later and was hired as an apprentice at the Ritz-Carlton Chicago.

In 1990, after six years of working in various culinary capacities (including a first job of cleaning fish for 12 hours a day), Stegner was promoted to chef of the Dining Room. She worked for years under the guiding hands of Fernand Gutierrez, former executive chef and director of food and beverage at the Ritz-Carlton Chicago, and current food and beverage director at Four Seasons Mexico City. Since then, Stegner has distinguished herself as one of America’s most creative young chefs.

As a result of her talents, she has captured many national honors. Chef Stegner was named Best Chef of the Midwest in 1998 by the prestigious James Beard Foundation, and the Dining Room was named one of the top five restaurants in Chicago in 1999 by Gourmet magazine, and it received four stars from the Chicago Tribune. In addition, it was rated best hotel dining room in Chicago in 1999 by the prestigious Zagat Chicago Restaurant Guide and was named Best Restaurant in Chicago in 1996 by Gourmet, one of the top 13 hotel dining rooms in the United States in 1996 by Bon Appétit, and one of the top 10 hotel restaurants in the world in 1996 by Hotels magazine.

Chef Stegner is recipient of the 1995 Robert Mondavi Culinary Award of Excellence and captured the national title of 1994 Rising Star Chef of the Year in America by the James Beard Foundation. She also holds the title of Prix Culinaire International Pierre Taittinger 1991 U.S. Winner, where she represented the United States in the finals in Paris and was the only female chef present at the global competition.

In recent years, Chef Stegner has enjoyed periodic training in France, under the expertise of Chef Pierre Orsi at his two-star Michelin Pierre Orsi Restaurant in Lyon, France, and with chefs Bertolli and Berard Bessin in Paris.

She also finds time to donate her talents to charitable causes. Six years ago, she founded The Women Chefs of Chicago, comprising the city’s top female chefs who donate cuisine for numerous events throughout the city to raise money for charity. Under her direction, The Women Chefs of Chicago have helped raise more than $500,000 for Chicagoland charities in the past few years.

Sarah’s support of her state’s agriculture is reflected in her food: she uses the finest seasonal produce from Midwest vegetable farmers and cheesemakers. She works with her husband, Rohit Nambiar, who manages the front of house at Prairie Grass Café. Her mother, Elizabeth Stegner, makes the pies served at Prairie Grass Café. Sarah feels right at home in her new restaurant.

i n t r O d u c i n g s a r a h s t e g n e r (Continued)

was owned by Steven Spielberg; Dan aykroyd was one of the co-founders of the house of Blues; robert De Niro, Christopher Walken, and others own ago; Kevin Costner, robert Wagner, Jack  Nicklaus, and Fred Couples owned the Clubhouse; and musicians Kenny rogers and Gloria estefan are also res- taurant owners.

Celebrity restaurants generally have an extra zing to them—a winning combination of design, atmosphere, food, and perhaps the thrill of an occa- sional visit by the owner(s).

steak houses the steak restaurant segment is quite buoyant despite nutritional concerns about red meat. the upscale steak dinner houses, such as Fleming’s prime Steakhouse & Wine Bar of Chicago, ruth’s Chris, and houston’s, continue

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to attract the expense account and “occasion” diners. Some restaurants are adding additional value-priced items such as chicken and fish to their menus to attract more guests. Steak restaurant operators admit that they are not expecting to see the same customer every week but hopefully every two or three weeks. the Chart house chain is careful to market its menu as includ- ing seafood and chicken, but steak is at the heart of the business, with most of its sales from red meat.

Outback Steakhouse, which is profiled in this chapter, owns and operates about a thousand Outback restaurants and about 30 Fleming’s prime Steakhouse & Wine Bars. Other restaurants in this segment include Stuart anderson’s Black angus, Golden Corral, and Western Sizzlin’, which all have sales of more than $300 million each. In fact, chains have the biggest share of the segment.

casual dining and dinner-house restaurants the types of restaurants that can be included in the casual dining restaurants category are as follows:

Midscale casual restaurants. romano’s Macaroni Grill, Olive Garden

Family restaurants. Cracker Barrel, Coco’s Bakery, Bob evans, Carrows

Fast Casual. panera Bread, Chipotle, Carmel Kitchen and Wine Bar, pDQ, Qdoba Mexican Grill, Five Guys Burgers and Fries

Ethnic restaurants. thai Flavor, Cantina Latina, panda express

Theme restaurants. hard rock Café, tGI Fridays, roy’s

Quick-service/fast-food restaurants. McDonald’s, Burger King, pizza hut, ponderosa, popeyes, Subway, taco Bell

as implied, casual dining is relaxed and could include restaurants from several classifications: chain or independent, ethnic, or theme. hard rock Café, tGI Fridays, Olive Garden, houston’s, romano’s Macaroni Grill, and red Lobster are good examples of casual dining restaurants.

houston’s, which is owned by the hillstone restaurant Group, is a leader in the casual restaurant segment, with about $5.5  million average per unit sales in its restaurants. the menu is limited to about 40 items and focuses on american cuisine, with an $18 average per-person ticket for lunch and a cost of $40–$45 for dinner. While encouraging local individuality in its res- taurants and maintaining exceptional executive and unit general manager stability, it succeeds with no franchising and virtually no advertising.

Over the past few years, the trend in dinner house restaurants has been toward more casual dining. this trend merely reflects the mode of society. Dinner house restaurants have become fun places to let off steam. a variety of restaurant chains call themselves dinner house restaurants. Some of them could even fit into the theme category.

Many dinner house restaurants have a casual, eclectic décor that may promote a theme. Chart house Seafood restaurant, for example, is a steak and seafood chain that has a nautical theme. tGI Fridays is an american bis- tro dinner house with a full menu and a décor of bric-a-brac that contributes

LearNING OBJeCtIVe 6 Name the classifications of restaurants.

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c O r P O r a t e P r O F i L e

Outback Steakhouse

The founders of Outback Steakhouse have proved that unconventional methods can lead to profitable results. Such methods include opening solely for dinner, sacrific- ing dining-room seats for back-of-the-house efficiency, limiting servers to three tables each, and handing 10 percent of cash flow to the restaurants’ general managers.

March 1988 saw the opening of the first Outback Steakhouse. Outback’s founders, Chris Sullivan, Robert Basham, and Tim Gannon, know plenty about the phi- losophy “No rules, just right” because they have lived it since day one. Even the timing of their venture to launch a casual steak place came when many pundits were pronouncing red meat consumption dead in the United States.

The chain went public and has since created a track record of strong earnings. It was evident that the three

founders were piloting one of the country’s hottest restaurant concepts. The trio found themselves with hundreds of restaurants, instead of the five they originally envisioned.

Robert Basham was given the Operator of the Year award at the Multi-Unit Foodservice Operators Confer- ence (MUFSO). He helped expand the chain, a pioneer in the steakhouse sector of the restaurant business, to more than a thousand restaurants with some of the highest sales per unit in the industry despite the fact that they serve only dinner (although they now serve lunch at some locations).

Perhaps the strongest indication of what this company is about lies in its corporate structure, or lack thereof. Despite its rapid growth, the company has no public relations department, no human resources department, and no recruiting apparatus. In addition, the Outback Steakhouse headquarters is very different from that of a typical restaurant company. There is no lavish tower—only modest office space in an average suburban com- plex. Instead of settling into a conservative chair and browsing through a magazine-lined coffee table (as is the case in most reception areas), at Outback you must belly up to an actual bar, brass foot rail and all, to announce your arrival.

Also, Outback’s dining experience—large, highly seasoned portions of food for moderate prices—is so in tune with today’s dining experience that patrons in many of its restaurants experience hour-long dinner waits seven nights a week. The friendly service is notable, from the host who opens the door and greets guests, to the well-trained servers, who casually sit down next to patrons in the booths and explain the house specialties featured on the menu.

Using such tactics and their “No rules, just right” philosophy, the founders have accomplished two main goals: discipline and solid growth. Good profits and excellent marketing potentials show just how successful the business has become. Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar, Carrabba’s Italian Grill, and Outback Steakhouse make up the Bloomin’ Brands, Inc. company.

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to the fun atmosphere. tGI Fridays is a chain that has been in operation for 50 years, so the concept has stood the test of time.

Family restaurants Family restaurants evolved from the coffee shop style of restaurant. In this segment, most restaurants are individually or family operated. Family restau- rants are generally located in or with easy access to the suburbs. Most offer an informal setting with a simple menu and service designed to please all the family. Some of these restaurants offer alcoholic beverages, which mostly consist of beer, wine, and perhaps a cocktail special. Usually, there is a host- ess/cashier standing near the entrance to greet and seat guests while food servers take the orders and bring the plated food from the kitchen. Some family restaurants have incorporated salad and dessert bars to offer more variety and increase the average check.

the lines separating the various restaurants and chains in the family segment are blurring as operators upscale their concepts. Flagstar’s acqui- sition of Coco’s Bakery and Carrows family restaurant brands has created the high-end niche of family dining—somewhere between traditional coffee shops and the casual dining segment. the value-oriented operator in the family dining segment is Denny’s. the more upscale family concepts include perkins, Marie Callender’s, and Cracker Barrel, all of which are sometimes referred to as the “relaxed” segment. these chains tend to have higher check averages than do traditional and value-oriented family chains, and compete not only with them, but also with moderately priced, casual-themed opera- tors, such as applebee’s and tGI Fridays.

Karen Brennan, Synergy restaurant Consultants, says that people’s use of restaurants is very different from five years ago. Consumers are thinking in terms of “meal solutions.” the operators in this segment are seeking to capi-

talize on two trends affecting the industry as a whole: the tendency of families to dine out together more often, and the quest among adults for higher-quality, more flavorful food offerings.

ethnic restaurants the majority of ethnic res- taurants are independently owned and operated. the owners and their families pro- vide something different for the adventurous diner or a taste of home for those of the same ethnic background as the restaurant. the traditional ethnic restaurants sprang up to cater to the taste of the

Hard Rock Café offers first-rate, moderately priced casual American fare with, of course, a side of rock and roll.

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various immigrant groups—Italian, Chinese, and so on.

perhaps the fastest growing segment of ethnic restaurants in the United States, popularity wise, is Mexican. Mexican food has a heavy representation in the south- western states, although, because of near- market saturation, the chains are spreading east. taco Bell is the Mexican quick-service market leader, with a 60-percent share. this Fortune 500 company has achieved this incredible result with a value-pricing policy that has increased traffic in all units. there are more than 6,000 units with sales of about $7 billion. Other large Mexican food chains are Del taco, La Salsa, and el torito. these Mexican food chains can offer a vari- ety of items on a value menu. Our cities offer a great variety of ethnic restaurants, and their popularity is increasing.

theme restaurants Many theme restaurants are a combination of a sophisticated specialty and several other types of restaurants. they generally serve a limited menu but aim to wow the guest by the total experience. Of the many popular theme restaurants, two stand out. the first highlights the nostalgia of the 1950s, as done in the t-Bird and Corvette Diners. these restaurants serve all-american food such as the perennial meatloaf in a fun atmosphere that is a throwback to the seemingly more carefree 1950s. the mostly female food servers ap- pear in short polka-dot skirts with gym shoes and bobby socks.

the second popular theme restaurant is the dinner house category; among some of the better-known national and regional chains are tGI Fridays, houlihan’s, and Bennigan’s. these are casual, american bistro-type restaurants that combine a lively atmosphere created in part by assorted bric-a-brac that decorate the various ledges and walls. these restaurants have remained popu- lar over the past 20 years. In a prime location, they can do extremely well.

people are attracted to theme restaurants because they offer a total expe- rience and a social meeting place. this is achieved through decoration and atmosphere and allows the restaurant to offer a limited menu that blends with the theme. throughout the United States and the world, numerous theme restaurants stand out for one reason or another. among them are decors featuring airplanes, railway, dining cars, rock and roll, 1960s nostal- gia, and many others.

Quick-service/Fast-Food restaurants QSrs consist of diverse operating facilities whose slogan is “quick food.” the following types of operations are included under this category: hamburger, pizza, chicken, pancakes, sandwich shops, and delivery services.

Guests being served at a Mexican restaurant.

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the quick-service sector is the one that really drives the industry. recently, the home-meal replacement and fast casual concepts have gained momentum (see Figure 6–1).

Quick-service or fast-food restaurants offer limited menus featuring food such as hamburgers, fries, hot dogs, chicken (in all forms), tacos, burritos, gyros, teriyaki bowls, various finger foods, and other items for the conve- nience of people on the go. Customers order their food at a counter under a brightly lit menu featuring color photographs of food items. Customers are even encouraged to clear their own trays, which help reduce costs. the following are examples of the different types of quick-service/fast-food restaurants:

Hamburger. McDonald’s, Burger King, Wendy’s

Pizza. pizza hut, Domino’s, Godfather’s

Steak. Bonanza, ponderosa

Seafood. Long John Silver’s

Chicken. KFC, Church’s Chicken, Zaxby’s, Kenny rogers roasters, popeyes

Sandwich. Subway

Mexican. taco Bell, el torito

Drive-thru/drive-in/delivery. Sonic, Domino’s, pizza hut

Quick-service restaurants have increased in popularity because of their location strategies. they are found in very convenient locations in every pos- sible area. their menus are limited, which makes it easy for customers to make quick decisions on what to eat. the world equates time with money these days, and most people do not want to spend time trying to look through long menus to make an eating decision. these restaurants deliver fast service and usually include self-service facilities, too. Such restaurants also use cheaper, processed ingredients, which allow them to have extremely

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Figure 6–1 • Approximate Market Share of Restaurant Segments.

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low, competitive prices. Quick-service restaurants also require minimum use of both skilled and unskilled labor, which increases the profit margins.

In an attempt to raise flat sales figures, more QSr chains are using cobranding at stores and nontraditional locations, including highway plazas and shopping centers. It is hoped that the traffic-building combos will increase sales among the separate brands, such as Carl’s Jr. and Green Burrito. Many QSr chains are targeting international growth, mostly in the larger cities in a variety of countries.

hamburgers McDonald’s is the giant of the entire quick-service/fast-food segment and serves millions of people daily. McDonald’s has 35,000 stores in 118 coun- tries with 1.9 million employees and sales of $27.5 billion.29 this total is amazing because it is more than the next three megachains combined— Burger King, KFC, and pizza hut. McDonald’s has individual product items other than the traditional burger—for example, chicken McNuggets and bur- ritos as well as salads and fish, which all aim to broaden customer appeal. Customer appeal has also been broadened by the introduction of breakfast and by targeting not only kids but also seniors. Innovative menu introduc- tions have helped stimulate an increase in per-store traffic.

In recent years, because traditional markets have become saturated, McDonald’s has adopted a strategy of expanding overseas. It is embarking on a rapid expansion in the world’s most populous nation, China, with more than 12,000 restaurants nationwide. the reason for this expansion in China is a rapidly developing middle class with a growing appetite for Western culture and food. McDonald’s is now in 118 countries and has a potential audience of 3.2 billion people. Of the company’s roughly 35,000 restaurants, approximately 16,000 are outside the United States, serving 70 million people each day.30

It is interesting to note that about 50 percent of total profits come from outside of the United States. More than two-thirds of new restaurants added by McDonald’s are outside of the United States. McDonald’s also seeks out nontraditional locations in the U.S. market, such as on military bases or smaller-sized units in the high-rent districts or gas stations.

McDonald’s is taking another step toward being the most convenient foodservice operation in the world by striking deals with gasoline compa- nies Chevron, Star enterprise, and Mobil to codevelop sites.

It is very difficult to obtain a McDonald’s franchise in the United States because they have virtually saturated the primary markets. It often costs between $1 million and $2 million to open a major brand fast-food restau- rant. Franchises for lesser-known chains are available for less money (about $35,000) plus the 4 percent of sales royalty fee and 4 percent fee for adver- tising, but an entrepreneur needs about $125,000 liquid and $400,000 net worth for an upscale, quick-service outlet, not counting land costs.

each of the major hamburger restaurant chains has a unique position- ing strategy to attract their target markets. Burger King hamburgers are flame broiled, and Wendy’s uses fresh patties. Some smaller regional chains are succeeding in gaining market share from the big-three burger chains because they provide an excellent burger at a reasonable price. In-N-Out Burger, Sonic, and rally’s are good examples of this.

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Pizza the pizza segment continues to grow, with much of the growth fueled by the convenience of delivery. there are several chains: pizza hut, Domino’s, Godfather’s, papa John’s, and Little Caesar’s. pizza hut, with more than 13,000 units,31 has broken into the delivery part of the business over which, until recently, Domino’s had a virtual monopoly. pizza hut has now developed systemwide delivery units that also offer two pizzas at a reduced price.

In response to the success of pizza hut’s Stuffed Crust pizza, Domino’s highlighted its Ultimate Deep Dish pizza and its pesto Crust pizza. It is cur- rently advertising its new artisan pizzas, which are intended to look like bistro-style pizzas, with unusual ingredients such as spinach and feta and salami and roasted vegetables.

chicken Chicken has always been popular and is likely to remain so because it is relatively cheap to produce and readily available and adaptable to a variety of preparations. It is also perceived as a healthier alternative to burgers.

KFC, with a worldwide total of more than 14,200 units,32 dominates the chicken segment. even though KFC is a market leader, the company contin- ues to explore new ways to get its products to consumers. More units now offer home delivery, and in many cities, KFC is teaming up with sister restau- rant taco Bell, selling products from both chains in one convenient location. KFC continues to build menu variety as it focuses on providing complete meals to families. amazingly, there are now more than a thousand KFC res- taurants in China.

Church’s Chicken, with over 1,600 units internationally,33 is the second largest chicken chain. It offers a simple formula consisting of a value menu featuring Southern-style chicken, spicy chicken wings, okra, corn on the cob, coleslaw, biscuits, and other items. Church’s focused on becoming a low-cost provider and the fastest to market. to give customers the value they expect day in and day out, it is necessary to have unit economies in order.

popeyes is another large chain in the chicken segment, with more than 2,000 units, it is owned by aFC enterprises. popeyes is a New Orleans–inspired “spicy chicken” chain operating in the United States and 25 countries.34

there are a number of up-and-coming regional chains, such as el pollo Loco, headquartered in Costa Mesa, California. It focuses on a marinated, flame-broiled chicken that is a unique, high-quality product. Kenny rogers roasters and Clucker’s Charcoal Chicken are also expanding rotisserie chains.

sandwich restaurants Indicative of america’s obsession with the quick and convenient, sandwiches have achieved star status. recently, menu debuts in the sandwich segment have outpaced all others. Classics, such as melts and club sandwiches, have returned with a vengeance—but now there are also wraps and panini.

a sandwich restaurant is a popular way for a young entrepreneur to enter the restaurant business. the leader in this segment is Subway, which

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operates more than 42,199 units in 107 countries.35 Co-founder Fred DeLuca parlayed an initial investment of $1,000 into one of the largest and fastest- growing chains in the world. Franchise fees are $12,500, with a second store fee of $2,500.

the Subway strategy is to invest half of the chain’s advertising dollars in national advertising. Franchise owners pay 2.5 percent of sales to the marketing fund. as with other chains, Subway is attempting to widen its core 18- to 34-year-old customer base by adding Kids’ Meals and Fresh Fit Choices aimed at capturing the health-conscious market. Subway has also added a breakfast menu and flatbread to its bread offerings.

bakery café the bakery café sector is headed up by panera Bread, a 1,880-unit chain in the United States and Canada, with the mission of “a loaf in every arm” and the goal of making specialty bread broadly available to consumers across the United States. panera focuses on the art and craft of bread- making, with made-to-order sandwiches, tossed-to-order salads, and soup served in bread bowls.36

▶ check Your Knowledge

1. Name the different classifications of restaurants, and give examples of each.

2. highlight some of the characteristics that make up the specific restaurant types.

trends in the restaurant Business Courtesy of Dr. Greg Dunn, Senior Lecturer & Managing Director, UF eric Friedheim tourism Institute

• Social Media. Social-media–based marketing for restaurants continues to grow and evolve. More and more people turn to the Internet for infor- mation about where to eat. restaurants will continue to engage social media such as pinterest, Facebook, and twitter as a key component of marketing strategy. along with registry sites that include a restaurant’s name, address, phone number, map, and menu, tomorrow’s restaurants will develop an online profile and participate in online review sites and blogs such as tripadvisor, Yelp, Zagat, and Urbanspoon.

• Sustainability and Local Foods. Consumers are increasingly aware of where their food is coming from and featuring local foods on menus is a great way for restaurants to capitalize on the current trend as well as help out your local farmers. While some restauranteurs participate in the farm-to-table movement where chefs establish direct relationships

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with both local and distant farmers to ensure the highest quality, sus- tainably farmed products, others operate their own farms and gardens. For instance, as the local sourcing trend continues, so does the hy- perlocal subtrend of in-house growing. Beyond restaurant gardens, hy- perlocal is extending more fully into house-made, farm-branded, and artisan items. From ice cream to cheese, pickles to bacon, lemonade to beer, restaurants are producing their own signature menu items from scratch.

• Concerns over Public Health. Now more than ever, restaurants are being pressured to create healthier meals with natural ingredients, smaller portions, and organic options. Many consumers are considered as overweight and/or plagued by chronic disease such as diabetes, while others suffer from allergies to core menu items that may contain peanut, gluten, or dairy-based ingredients. In response to public demand, more restaurants will offer smaller portion sizes and healthier food options on their regular menu as well as on children’s menus. Some restaurants are even transitioning into organic only, grain-free, and GMO-free eater- ies, while others such as Chipotle, Bareburger, and pDQ feature organic and fresh ingredients into their menus.

• Environmental Responsibility. In concert with changes in consumer attitudes and demand for greater sustainability and environmental sensitivity by suppliers, food waste reduction and management is at the forefront of restaurant operations. Composting, recycling, and donating are all tactics of food waste strategies tying into both sustain- ability and social responsibility. In addition, food costs are expected to continue to rise causing restaurants to take a closer look at minimizing waste and surplus as a cost-management tool.

• Global Menus. an evolving trend for the past decades, ethnic cuisine continues its inroads into mainstream menus. as american palates become more sophisticated and adventurous, so do restaurant offerings. Micro-trending in this category includes fusion cuisine cooking, molecu- lar gastronomy, and the blending of local authentic, regional and global foods, spices, and cooking styles, reflecting the breadth and depth of new techniques and flavors being explored. also, ethnic ingredients, including cheeses, flour, and condiments, are increasingly finding their way into nonethnic dishes. Specific dishes, such as ramen, ethnic street- food, and kids’ entrees are also gaining momentum.

• Locally Sourced Food. From meats and seafood to produce, restaurants are more frequently purchasing from local farmers and fishermen, which helps to increase sustainability. Many independent restaurants are practicing hyperlocal sourcing by planting their own restaurant gardens.37

• Healthful Kids’ Meals. restaurants are creating specialized kids’ meals that are not only healthy, but appetizing and aesthetically presented as well. Moving away from the traditional children’s fare of fried chicken fingers and fries, hamburgers, and hot dogs, today’s menu items are more likely to include a combination of lean protein, colorful fruits and vegetables, whole grains, and light marinades and sauces.38

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Key Words and Concepts ambiance atmosphere casual dining celebrity-owned restaurant chain restaurant contribution margin culinary arts dinner house restaurant

ethnic restaurant family restaurant fine-dining restaurant food cost percentage fusion haute cuisine independent restaurant (indie) mother sauces

niche nouvelle cuisine purée quick-service restaurant (QSR) roux sales volume theme restaurant weighted average

Review Questions

1. How can social media be used in restaurant marketing and sales?

2. What are the five mother sauces?

3. What are general considerations in menu planning?

4. Explain why there is no single definition of the various classifications of restaurants; give examples.

Internet Exercises

1. Organization: TripAdvisor Summary: TripAdvisor, Inc. is a travel Web site that provides reviews of travel-related content. Most of the content on the Web site is generated by users, and the site is sup- ported by an advertising business model.

(a) Under the “Restaurants” section of the Web site, enter your location and compare the reviews of the listed restaurants. (b) Based on your experience at the listed restaurants, do you think the reviews are accurate?

Summary 1. Restaurants offer the possibility of excel-

lent food and social interaction. In general, restaurants strive to surpass an operating philosophy that includes quality food, good value, and gracious service.

2. To succeed, a restaurant needs the right loca- tion, food, atmosphere, and service to attract a substantial market. The concept of a restau- rant has to fit the market it is trying to attract.

3. The location of a restaurant has to match factors such as convenience, neighborhood, parking, visibility, and demographics. Typical

types of locations are downtown, suburban, shopping mall, cluster, or standalone.

4. The menu and pricing of a restaurant must match the market the restaurant wants to attract, the capabilities of the cooks, and the existing kitchen equipment.

5. The main categories of restaurants are inde- pendent and chain. Further distinctions can be made as follows: fine dining, casual dining and dinner house, family, ethnic, and quick- service/fast-food. In general, most restaurants fall into more than one category.

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2. Organization: Michelin Guides Summary: Michelin Guides is a series of an- nual guide books published by the French company Michelin that rates restaurants for dining quality by giving them Michelin stars. the acquisition or the loss of a Michelin

star can affect a restaurant’s business dramatically.

(a) Got to the Web site and find out the Michelin-starred restaurants in your area.

apply Your Knowledge

1. In groups, evaluate a restaurant and write out a list of weaknesses. Use the headings outlined in the restaurant chapters. then,

for each of the weaknesses, decide on which actions you would take to exceed guest expectations.

Suggested activities

1. Identify a restaurant in your neighborhood and identify its catchment area. (a catch- ment area is the area where guests will be coming from.) how many potential guests live and work in the catchment area?

2. Search the Web for examples of four great restaurant Web sites. Compare them and share your findings in class.

endnotes 1. National restaurant association, News and

Research. http://www.restaurant.org. Go to News & research and click on Facts at a Glance (accessed July 22, 2014).

2. Sarah r. Labensky and alan M. hause, On Cooking, 4th ed. (Upper Saddle river, NJ: prentice hall, 2007), 6–7.

3. Ibid. 4. Charlie trotter, Charlie Trotter (Berkeley, Ca: ten

Speed press, 1994), 11. 5. Ibid., 12. 6. alicia Kelso, “Nra, healthy Dining Launch healthy

Menu Initiative for Kids,” Fast Casual, July 12, 2011, www.fastcasual.com. Search “healthy menu initiative for kids” to access article (accessed November 4, 2011).

7. Wikipedia, Auguste Escoffier, http://en.wikipedia. org. Search for “auguste escoffier” (accessed Sep- tember 1, 2015).

8. tim henschel, “reflecting on the technology trends for the restaurant Industry in 2015,” NCR Blogs, March 6, 2015 (9:32 a.m.), http://www .ncr.com. Click on Blogs, hospitality, and search for “ reflecting on the technology trends for the restaurant Industry” to view this post (accessed May 27, 2015).

9. Skip Cass, “technology Continues to transform the Guest experience,” Restaurant Hospitality, July 15, 2013, http://restaurant-hospitality.com. Search for “tablet technology” to view this article (accessed May 27, 2015).

10. Charlie White, “Maximize Your Weekend with the 35 Most popular restaurant apps,” Mashable,

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February 16, 2013, http://mashable.com. Search for “Maximize Your Weekend” to view this article (accessed May 27, 2015).

11. abigail a. Lorden and Dorothy Creamer, “pOS Soft- ware trends 2013,” Hospitality Technology (HT), December 11, 2012, http://hospitalitytechnology .edgl.com. Search “pOS Software trends 2013” to view this article (accessed July 28, 2015).

12. “Big Data: Get Insights on What It Means for restaurants,” National Restaurant Association, February 19, 2015, http://www.restaurant.org. Search “big data insights” to view this article ( accessed May 13, 2015).

13. “Wrap Your arms around Big Data,” National Restaurant Association, http://www.restaurant.org. Search for “Wrap your arms around big data” to view this article (accessed May 13, 2015).

14. this section is courtesy of Chef Michael Zema, elgin Community College, elgin, IL.

15. Don Daszkowski, “Most popular Franchises and how Much they Cost,” About.com, www .about.com. Search for “Most popular Franchises and how Much they Cost” to view this article ( accessed May 11, 2015).

16. restaurant reformer, “Cork and Knife – restau- rants tackle their Own Incovenient truth,” http:// www.restaurantreformer.com. Search for “restau- rants tackle their own inconvenient truth” to view this post (accessed September 1, 2015).

17. Green restaurant association, http://www . dinegreen.com (accessed March 8, 2014).

18. Ibid. 19. Green restaurant association, “Certification

Standards for all Foodservice Operations,” http:// www.dinegreen.com. Click on Certification Standards (accessed March 8, 2014).

20. Ibid. 21. Julie Jargon, Joann S. Lublin and David Benoit,

New Board Will Set Darden’s Menu. the Wall Street Journal October 11-12 2014 p. B3.

22. Chipotle, “Food with Integrity,” www.chipotle .com. Click on Food with Integrity (accessed November 4, 2014).

23. Judi Curry, “restaurant review: Seasons 52,” San Diego Free Press, January 9, 2014, www.sandiego freepress.org. Search “Seasons 52” for this article (accessed November 4, 2014).

24. Ibid. 25. U.S. Department of agriculture, ChooseMyplate.

gov, About Us, www.choosemyplate.gov. Click on about Us (accessed November 4, 2011).

26. Dave pavesic, “how to Win the Menu pricing Game,” Restaurant Resource Group, http://rrg consulting. com. Click on tips & articles to find this article ( accessed May 27, 2015).

27. Gregg rapp, “Menu engineering: how to raise restaurant profits 15% or More,” Menu Cover Depot, http://www.menucoverdepot.com/. Click on resource Center and then articles to view this article (accessed May 27, 2015).

28. personal conversation with Jay r. Schrock, Dean, School of hotel and restaurant Management, University of South Florida.

29. McDonald’s, Our Company, http://www.mcdonalds .com. Click on Corporate and then click on Our Company (accessed July 22, 2014).

30. Ibid. 31. Yum! Brands, Pizza Hut, http://www.yum

.com. Go to Our Brands and click on pizza hut ( accessed November 20, 2013).

32. Yum! Brands, KFC, http://www.yum.com. Go to Our Brands and click on KFC (accessed May 27, 2014).

33. entrepreneur, Church’s Chicken, http://www .entrepreneur.com/. Search for Church’s Chicken ( accessed November 20, 2013).

34. popeyes Louisiana Kitchen, Company Overview, www.popeyes.com. Click on Company and then about popeyes (accessed November 4, 2014).

35. Subway, Home, http://www.subway.com (accessed July 22, 2014).

36. panera Bread, Our History, www.panerabread. com. Click on about panera Bread and then click on Our history (accessed april 1, 2015).

37. Jan Fletcher, “a Case for Sourcing Locally,” QSR, http://www.qsrmagazine.com. Search for “a Case for Sourcing Locally” to view this article (accessed January 8, 2015).

38. anita Jones-Mueller, “7 tips for healthful Kids’ Meals,” National Restaurant Association, http://www .restaurant.org. Search for “7 tips for healthful kids’ meals” to view this article (accessed January 8, 2015).

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