2 Understanding Foodservice Operations Objective Recognize various foodservice

2 Understanding Foodservice Operations

Objective • Recognize various foodservice segments. Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Foodservice Segments • Commercial foodservice: businesses with a primary goal of preparing and selling food for money continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Foodservice Segments • Noncommercial foodservice: operations that provide foodservice as a secondary activity; also called institutional foodservice Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Commercial Foodservice • Includes – full-service restaurants – quick-service restaurants – hotels – clubs – catering Ø What are some examples of commercial foodservice in your area? Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Restaurants • Full-service restaurants: span a range of styles from fine dining to casual • Quick-service restaurants: customers typically place orders at counter; offer speed, convenience, and reasonable prices; often called fast-food restaurants; some of the most lucrative operations in the industry Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Hotels • Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Hotels • Hotel restaurants provide service to registered guests as well as the community • Many hotels operate room service and banquet facilities Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Clubs • Many private clubs provide their members with clubhouses with restaurant and banquet facilities • Members expect fine cuisine and excellent service • Members of city clubs use the club’s dining rooms for business and entertaining purposes Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Catering • Catered events are often held in a hall or banquet facility • Off-premise catering involves catering locations that do not normally serve food Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Noncommercial Foodservice Includes • corporations • schools • colleges and universities • hospitals and nursing homes • military continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Noncommercial Foodservice • • • travel parks and recreation stadiums and sports arenas convention centers prisons and correctional facilities Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Objective • Compare and contrast the different forms of business ownership. Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Legal Forms of Business Ownership • Free enterprise recognizes and promotes a person’s right to own a business • The three main legal categories of ownership are – sole proprietorship – partnership – corporation Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Sole Proprietorship • The owner of a sole proprietorship is personally responsible for all debts of the business • Sole proprietors have final authority on all decisions Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Partnership • A partnership agreement spells out the responsibilities of each partner and how profits and losses will be divided • Each owner is personally responsible for all the debts of the business in a partnership • Legally, the partnership is ended when one or more partners dies or leaves the business Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Corporation • Ownership of a corporation is divided among investors in parts called shares • The corporation has most of the rights and responsibilities of a real person, including responsibility for its debts • In general, corporations pay more taxes than other forms of ownership Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Objective • Summarize government’s involvement in regulating foodservice operations. Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Foodservice Laws and Regulations • Laws and regulations governing how a foodservice business operates may be enforced by one of three levels of government—federal, state, or local • Businesses must abide by the law or regulation which is most strict Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Objective • Explain the different ways foodservice businesses are organized. Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Organization of Foodservice Businesses • Foodservice businesses can be organized as – independent restaurants – chains – franchises Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Independent Restaurants • An independent restaurant is a restaurant that is not a part of a group • Each is a unique operation with different ownership Ø What are some advantages and disadvantages for independent restaurants? Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Chains • Chain restaurants are often referred to as “multiunit foodservice operations” • A chain uses the same menu, décor, and management practices in each location Ø What are some advantages and disadvantages for chain restaurants? Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Franchises • The owner of a franchise restaurant pays for the right to operate a franchise and is called a franchisee • The franchisee – pays a fee for the right to use the brand name, concept, logo, and advertising – is required to use the franchise company’s products and operate by its standards Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Objective • Summarize the risks and rewards of entrepreneurship. Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Entrepreneurship • Many entrepreneurs are attracted to foodservice businesses continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Entrepreneurship • Successful chef-entrepreneurs must have – great culinary skills – business management expertise – the ability to see the larger business environment and new opportunities Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Risks and Rewards • Risks of entrepreneurship – Repayment of debts if the business fails – Restaurants have high failure rates • Rewards of entrepreneurship – Being your own boss – Financial gain – Personal and professional pride Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Compare the two foodservice segments – Commercial foodservice is businesses with a primary goal of preparing and selling food for money. – Noncommercial foodservice includes operations that provide foodservice as a secondary activity; also called institutional foodservice. continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Give examples of both commercial and noncommercial foodservice – Commercial: full-service restaurants, quickservice restaurants, hotels, clubs, catering – Noncommercial: corporations, schools, colleges and universities, hospitals and nursing homes, military continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Describe the difference between full-service and quick-service restaurants – Full-service: servers take the customer’s order and bring the meal to their table; can be casual or fine-dining – Quick-service: customers typically place orders at a counter; offer speed, convenience, and reasonable prices continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Describe three forms of business ownership – Sole proprietorship: one owner; responsible for all debts of the business; makes all decisions – Partnership: ownership shared by two or more people; each owner is responsible for all debts of the business; share business responsibilities – Corporation: a separate entity with legal rights; ownership is divided among investors; the corporation is responsible for its debts continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • What level of government enforces laws and regulations governing foodservice businesses? – Federal, state, or local government may enforce laws and regulations governing foodservice businesses continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Explain how independent restaurants, chains, and franchises differ – An independent restaurant is not part of a group; a chain is a group of restaurants owned by the same company; franchise restaurants are independently owned restaurants that are part of a larger restaurant chain continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • What attracts entrepreneurs to foodservice businesses? – Most restaurants are small, independent operations; small businesses have lower startup costs; small businesses are easier to manage continued Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.

Review • Describe the risks and rewards of entrepreneurship – Risks: having to repay debts if the business fails; restaurants have high failure rates – Rewards: being your own boss; financial gain; personal and professional pride Copyright Goodheart-Willcox Co. , Inc. May not be posted to a publicly accessible website.