Eighth Edition Restaurant Concepts, Management, and Operations John R. Walker, DBA, CHA, FMP McKibbon Professor of Hotel and Restaurant Management and Fulbright Senior Specialist University of South Florida Sarasota-Manatee ffirs.indd 1 8/16/2017 1:23:55 PM VP AND EDITORIAL DIRECTOR George Hoffman EDITORIAL DIRECTOR Veronica Visentin ACQUISITIONS EDITOR Elena Herrero EDITORIAL ASSISTANT Ethan Lipson EDITORIAL MANAGER Gladys Soto CONTENT MANAGEMENT DIRECTOR Lisa Wojcik CONTENT MANAGER Nichole Urban SENIOR CONTENT SPECIALIST Nicole Repasky PRODUCTION EDITOR Loganathan Kandan PHOTO RESEARCHER Alicia South-Hurt COVER PHOTO CREDIT © Siri Stafford/Getty Images; © Tetra Images/Getty Images This book was set in 10/12 Minion-pro by SPi Global and printed and bound by Strategic Content Imaging. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. 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Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at: www.wiley.com/go/returnlabel. If you have chosen to adopt this textbook for use in your course, please accept this book as your complimentary desk copy. Outside of the United States, please contact your local sales representative. ISBN: 978-1-119-32610-6 (PBK) ISBN: 978-1-119-39366-5 (EVALC) Library of Congress Cataloging in Publication Data: Names: Walker, John R., 1944- author. Title: Restaurant concepts, management and operations / John R. Walker, DBA, CHA, FMP, McKibbon Professor of Hotel and Restaurant Management, and Fulbright Senior Specialist, University of South Florida Sarasota-Manatee. Description: Eighth Edition. | Hoboken : Wiley, [2017] | Revised edition of the author’s The restaurant, [2014] | Includes bibliographical references and index. Identifiers: LCCN 2017013984 (print) | LCCN 2017023654 (ebook) | ISBN 9781119326106 (pbk.) | ISBN 9781119393627 (epub) | ISBN 9781119393580 (pdf) Subjects: LCSH: Restaurant management. Classification: LCC TX911.3.M27 W352 2017 (print) | LCC TX911.3.M27 (ebook) | DDC 647.95068—dc23 LC record available at https://lccn.loc.gov/2017013984 The inside back cover will contain printing identification and country of origin if omitted from this page. In addition, if the ISBN on the back cover differs from the ISBN on this page, the one on the back cover is correct. ffirs.indd 2 8/16/2017 1:23:55 PM Dedication To Donald Lundberg, PhD, my mentor, colleague, and friend. Don was admired and respected in the halls of academia as a scholar and pioneer of hospitality and tourism education. And to you, the professors, students, and future restaurant owners, wishing you success and happiness. ffirs.indd 3 8/16/2017 1:23:55 PM ffirs.indd 4 8/16/2017 1:23:55 PM Contents Preface vii Planning Services 71 Common Denominators of Restaurants 71 Acknowledgments xi Mission Statement 78 Concept and Location 79 Criteria for Locating a Restaurant 79 Part One Location Information Checklist 90 Restaurants, Owners, Locations, and Concepts 1 Part Two Restaurant Management 95 Chapter 1 Introduction 3 Chapter 4 Early History of Eating Out 5 The Menu 97 French Culinary History 6 Considerations in Planning a Menu 98 Birth of Restaurants in America 6 Capability/Consistency 99 Challenges of Restaurant Operation 12 Equipment Capacity and Layout 100 Buy, Build, Franchise, or Manage? 13 Availability of Ingredients 100 Starting from Scratch 16 Price and Pricing Strategy 100 Restaurants as Roads to Riches 17 Nutritional Value 103 The Chipotle Effect 18 Flavor 109 Accuracy in Menus 110 Chapter 2 Menu Items 112 Restaurants and Their Owners 23 Menu Types 114 Kinds and Characteristics of Restaurants 24 Menu Engineering 117 Sandwich Shops 28 Menu Design and Layout 118 Quick-Service Restaurants 28 Standardized Recipes 122 Fast-Casual Restaurants 30 Menu Trends 122 Family Restaurants 31 Chapter 5 Casual Restaurants 32 Fine-Dining Restaurants 33 Restaurant Business Hotel Restaurants 34 and Marketing Plans 129 Steakhouses 35 Seafood Restaurants 37 What Business Entity Is Best? 130 Ethnic Restaurants 38 Buy–Sell Agreement with Partners 135 Theme Restaurants 40 Legal Aspects of Doing Business 136 Coffee Shops 43 Business Plan 140 Chef-Owned Restaurants 43 The Difference between Marketing and Sales 143 Celebrity Chefs 46 Marketing Planning and Strategy 143 Centralized Home Delivery Restaurants 49 Market Assessment, Demand, Potential, and Competition Analysis 147 Chapter 3 Marketing Mix—The Four Ps 149 Concept, Location, and Design 55 Chapter 6 Restaurant Concepts 56 Restaurant Leadership Defining the Concept and Market 60 and Management 165 Successful Restaurant Concepts 62 Restaurant Life Cycles 65 Leading Employees 166 Concept Adaptation 67 The Nature of Leadership 168 Restaurant Symbology 69 Employee Input, and What’s in It for Me? 169 Multiple-Concept Chains 69 Policies and Procedures 170 Sequence of Restaurant Development: From Concept Management Topics 170 to Opening 70 Restaurant Management Issues 175 ftoc.indd 5 8/4/2017 6:37:07 PM vi Contents Chapter 7 Control 305 Planning and Equipping the Kitchen 189 Inventory Control 306 Food Costing 307 Back-of-the-House Green 192 Liquor Control 308 Open Kitchen 193 Controllable Expenses 311 Kitchen Floor Coverings 196 Labor Costs 312 Kitchen Equipment 196 Labor Management 317 Equipment Stars 200 New Overtime Rule 317 Maintaining Kitchen Equipment 209 Financial Reporting 318 Meeting with the Health Inspector 210 E-learning 318 Guest Check Control 318 Productivity Analysis and Cost Control 319 Chapter 8 Food Purchasing 215 Chapter 12 Sustainable Purchasing 216 Food Production and Sanitation 325 Food-Purchasing System 220 Our Culinary Heritage 326 Types of Purchasing 223 Native American Influence 326 Buying Meat 224 African-American Influence 327 Buying Fresh Fruits and Vegetables 226 Italian Influence 327 French Influence 327 Chapter 9 Receiving 331 Financing and Leasing 233 Storage 332 Food Production 333 Financing 234 Production Procedures 336 Sufficient Capital 234 Staffing and Scheduling 337 Preparing for the Loan Application 235 Foodborne Illness 337 Uniform System of Accounts for Restaurants 242 Hazard Analysis of Critical Control Points 344 Securing a Loan 247 Common Food Safety Mistakes 346 Leasing 256 Approaches to Food Safety 347 What Is a Restaurant Worth? 262 Food Protection as a System 348 Chapter 13 Part Three Organization, Recruiting, and Staffing 353 Restaurant Operations 267 Job Descriptions 354 Organizing People and Jobs 357 Chapter 10 Staffing the Restaurant 357 Bar and Beverages 269 Civil Rights Laws 367 Alcoholic Beverage Licenses 270 Questions to Avoid on the Application Form Bar Layout and Design 272 and During the Interview 369 Beverages 274 Careful Selection of Staff 373 Bartenders 278 Basic Bar Inventory 278 Chapter 14 Wines 280 Training and Service 379 Responsible Alcoholic Beverage Service 289 Orientation 380 Third-Party Liability 290 Part-Time Employees 381 Controls 290 Training and Development 381 Coffee and Tea 291 Methods for Training Employees 389 Service 392 Chapter 11 Tact: Always 403 Budgeting and Control 297 Restaurant Operations 298 Glossary 407 Front of the House 298 Index 417 Back of the House 303 ftoc.indd 6 8/4/2017 6:37:07 PM Preface As an author, it is very important that I listen to faculty colleagues and include their suggestions in the text. For this new eighth edition, reviewers suggested that the order of the chapters be slightly changed to conform to the modified title of Restaurant Concepts, Management, and Operations. Hopefully this will better fit your teaching and student learning styles. As always, my sincere thanks to all the professors and students who are shaping the future of this great restau- rant industry. I recently spoke with a former student, now the owner of a new independent restaurant venture in a large city full of good dining spots. This restaurant, over time, had established itself as a pillar of the community. This particular restaurateur had been in business for just over two years; and from day 1, his seats were filled with eager and optimistic guests who had either heard the hype or already experienced the wonder this establishment was known to offer. I asked him how he managed to continuously garner so much business in an area known for being a dining “mecca.” Moreover, how had he managed to maintain relevance and peak interest in a city that both opens and closes more restaurants than anywhere else in the country? His response was simple, but it spoke wonders about what I have been trying to accomplish as a teacher and writer of restaurant books. He said: I went to school, I read your book, and I paid attention to the details. Now in its Eighth Edition, Restaurant Concepts, Management, and Operations continues the success of previous editions, providing the skills and information needed to be more likely to succeed in this highly competitive and rewarding industry. The opportunity to be the leader of a highly efficient and enthusiastic team is appealing—the responsibility for the business rests on your shoulders. With Restaurant Concepts, Management, and Operations, Eighth Edition, you will learn how to lead and empower a well-trained team to increase guest satisfaction, revenues, and return on investment. After all, isn’t profit the goal? In today’s competitive market, a well-thought-out concept and location are paramount to the suc- cess to the operation. Whether your concept is for a small town or large city, strip mall or free- standing operation, franchise or new concept, the basic rules outlined in Restaurant Concepts, Management, and Operations, will apply. About This Book FOR THE STUDENT Opening a restaurant is a distinct challenge. It is also a thrill that gives one the opportunity for tremendous creative expression. Developing the menu, creating a new dish, designing the décor, attending to the level of service, and establishing an ambience—all of these factors contribute to exceeding guest expectations. Restaurant Concepts, Management, and Operations will help those who are interested in learning more about the restaurant industry. It will help students gain the knowledge they need to be successful in an easy-to-read style with several pedagogical features—such as sidebars, case studies, and profiles of successful restaurateurs—that impart the knowledge of experts for the benefit of students. FOR THE INSTRUCTOR Restaurant Concepts, Management, and Operations is a comprehensive primer for restaurant management courses at the college and university level. It is used for a variety of restaurant courses and covers everything from the concept; types of ownership; types of restaurants; menus, planning, and equipping the kitchen; purchasing; bar and beverages; operations, budgeting and control; food production and sanitation; restaurant leadership and management; organization and staffing; training and development; service and guest relations; technology; business and marketing plans; financing and leasing; and legal and tax matters. fpref.indd 7 8/10/2017 12:43:38 PM viii Preface Restaurant Concepts, Management, and Operations assumes no specific knowledge other than a general familiarity with restaurants. It can be used at any course level in a restaurant, hospi- tality, or culinary arts program. It is also suitable for seminars and continuing education courses. Helping to meet continuing restaurant challenges is the oncoming wave of students who have studied culinary arts and restaurant management, and those who view the restaurant business as a career of choice. A restaurant can be fun to operate, and the profit margins can be substantial. It is interesting to learn that at least one billionaire, Tom Monaghan, made his fortune in the pizza business, and that dozens of millionaires have acquired fortunes in restaurants. Some of their stories are told in this book. New To This Edition For The Restaurant, Eighth Edition, revisions include: In response to reviewers suggestions the order of chapters has been revised to better fit with the amended title of Restaurant Concepts, Management, and Operations. ■ New reorganization of the chapters: This edition is condensed to 14 chapters, now better fitting a traditional semester schedule and consolidated for a more coherent read. ■ An extended version of the case studies is available on the Wiley Book Companion web- site (www.wiley.com/college/walker) for this new edition. ■ Information on minimum wage, food trucks, gluten-free cooking, and menu items is now included. ■ Examples and discussions of the overtime rule, new restaurant concepts and their founders are now included. ■ New sections on successful strategies in healthy eating, veganism, and vegetarianism, and how they all relate to the restaurant business, are now included. ■ A new section on cocktails is now included. ■ An updated discussion on how service styles have been updated throughout this new edition. ■ An increased focus toward the independent restaurateur has been continued for this new edition. ■ New sections on wine have been added to Chapter 10: Bar and Beverages. ■ Additional emphasis on restaurant business plans, restaurant management, and oper- ations is included in this new edition. Additionally, each chapter has been revised, updated, and enhanced with numerous indus- try examples, sidebars offering advice, charts, tables, and photographs. All these additions and changes enhance the contents, look, and usefulness of the book. ORGANIZATION Restaurant Concepts, Management, and Operations, Eighth Edition is carefully structured for teaching and learning. Now consolidated into 14 chapters, Restaurant Concepts, Management, and Operations is organized into three parts that take the reader step-by-step through the pro- cess of creating, opening, operating, and managing a restaurant: Part One: Restaurants, Owners, Locations, and Concepts Chapter 1. Introduction; Chapter 2. Restaurants and Their Owners; Chapter 3. Concept, Location, and Design. Part Two: Restaurant Management Chapter 4. The Menu; Chapter 5. Restaurant Business and Marketing Plans; Chapter 6. Restaurant Leadership and Management; Chapter 7. Planning and Equipping the Kitchen; Chapter 8. Food Purchasing; Chapter 9. Financing and Leasing. fpref.indd 8 8/10/2017 12:43:38 PM