UNIT III STUDY GUIDE
Course Learning Outcomes for Unit III
Upon completion of this unit, students should be able to:
1. Identify the impact of using current technology in the hospitality industry.
1.1 Outline technology advances in restaurant operations and their implications.
4. Contrast the differing management concepts involved in serving different types of customers in
various venues within the hospitality industry.
4.1 Recommend the types of service and trainings required for a successful restaurant outlet.
5. Determine marketing strategies within the operations of hospitality and tourism entities.
5.1 Identify current trends in the restaurant industry.
7. Recommend factors effecting consumer behavior and positive and poor service quality.
7.1 Determine the various trainings necessary for proper restaurant service operations.
Chapter 6: The Restaurant Business
Chapter 7: Restaurant Operations
In this generation of quick service and fast foods, one can become quite familiar with hamburgers, hot dogs,
taquitos, chicken nuggets, deli sandwiches, and McEverything. Every one of these food items has a
respective chain restaurant attached to it, probably more than one. The idea is to understand why these
chains have been successful or not, and then relate these issues to independent operators of restaurants.
The main two types of restaurants are chain and independent. There are numerous types of restaurants,
including casual, quick service, family style, and fine dining. The type of restaurant is usually denoted by how
your food is served to you. Several may have more than one label, but again, this depends on how your food
is served to you (Walker, 2013).
If you have travelled the highways of America, you have no doubt seen the obvious signs and billboards
telling you all about how much bigger and better one restaurant is over another. However, whether or not you
will eat at those restaurants is generally based on your previous experiences or from another person’s wordof-mouth perceptions and evaluation. Was the food and service worthy of your money? Was the customer
service good, bad, or ho-hum? The companies want to know this since they need your dollars to keep them in
business. Be sure to share your thoughts and feelings with management in a respectful manner. Most of the
time, it will be received with courtesy and a smile. If it is not, then you can really understand the power of the
American consumers spend over 50% of their food dollars away from home, which is a statistic we may or
may not be proud of (Walker, 2013). The American food dollar is not necessarily spent according to a specific
generational separation. Baby boomers have enough dollars to spend and attract any food purveyor that will
meet their needs. Tweens and teens have been brought up with fast food franchises and expect them to be
around every corner for their immediate gratification and convenience, which is the case in some towns.
Branding and marketing are so in line with customers and target markets that the ages served and desired
can be pinpointed exactly.
BHM 3010, Introduction to Hospitality
The advances of technology have not been ignored in the restaurant/food business.
at various restaurants via visual-computer point of sale (POS) and any numberTitle
of virtual apps available for
your smartphone. The money has also become virtual as you can now pay with a quick debit/credit card
swipe or an electronic check with no cash needed. The days of hoping the check will not get to the bank
before you do with the money are gone! The absolute convenience factor has been enhanced with the advent
of mini service kiosks, gas station retail units, online ordering apps, and co-branding of products in one
storefront, which will continue to expand availability and our waistlines.
A successful restaurant requires a diverse team, all working towards creating a positive customer experience.
Each individual in the restaurant provides a support function to maintain smooth running operations. Making a
decision about a career in the food industry would benefit from knowing how your talents and personality
would best fit with the skill set required to work successfully in food service. As a restaurant employee, it is
important to have strong people skills. You will meet customers consistently throughout the day, requiring a
friendly personality, the ability to work with time restrictions, and patience in dealing with disgruntled
customers. As a member of the restaurant team, you must share a common goal, which is customer
satisfaction. Additionally, team support in the operations of the restaurant gives strength to the group and
leads to the restaurant’s success.
The restaurant’s success is also contingent on a strong menu. The menu is the driver of all function and
design in a restaurant operation. Restaurant menus will denote personality, operational focus, and budget
standards. Each of these will contribute to the customer’s mindset about the restaurant. The menu should
establish an impression in the customers’ minds that makes them excited about being there, excited about
returning with family and friends, and willing to recommend the restaurant to others (Walker, 2013). A
comparison of your competitors’ menus to yours is an excellent measure of pricing strengths and
weaknesses. This analysis can also determine the items on the menu that are your profit leaders, which ones
need more highlighting, and which ones need to be taken off the menu all together.
The operations of the restaurant combine the efficiencies of the front of the house (FOH) and back of the
house (BOH). The efficiencies refer to the ability of the two areas to communicate and deliver on the
customers’ expectations (Walker, 2013). The FOH includes the selling points of the restaurant as well as the
dining areas. The BOH includes the kitchen, storage, and mechanical support areas for the restaurant. With
either section not functioning properly, the operation can be stressful and haphazard. Employees will not want
to work in an environment that is dysfunctional, affecting your customers and their service to the extreme.
Ultimately, the restaurant manager’s job is to maintain a smooth running operation, along with a functional
team environment, generating a profit for the owners and stakeholders.
Management’s involvement in the restaurant is vital to its success. Dedicating the proper amount of time on
operations, as well as identifying and working with current industry trends is one of the many challenges of
management (Walker, 2013). Ongoing trends in the food business include sustainability and
environmentalism. Consumers expect businesses to be eco-friendly, utilizing the reduce-reuse-recycle rule of
operations. Customers can be involved in this campaign to make the restaurant efforts more visible. Have the
customers place their used items in recycling containers, ask if they want paper-or-plastic or no bag at all, and
flaunt the recycled products used in the restaurant (e.g., napkins, cups). Addressing environmental issues can
be another method of developing strong customer relationships. Utilizing energy saving lighting, biodegradable cleaning agents, passive solar heating and/or solar power, and water flow restrictors are some of
the methods that can raise your customer awareness and generate repeat business. The use of the “green
business” tagline means demonstrating to the customer your concern and actions.
Managers and operators are required to know the strengths and weaknesses of their business and execute a
plan of improvement and change when needed. Analyzing financial indicators in daily operations, along with
the numerous financial statements, requires a strong focus and financial knowledge. There must be an
understanding of accounting methods in recording operating transactions and in the preparation of financial
reports. This must be done in accordance with U.S. generally accepted accounting principles (GAAP)
(Walker, 2013). Additionally, there must be training in a restaurant’s balance sheet, income, cash flow, and
equity statements. A key to any successful restaurant is maintaining an accurate food-cost percentage. The
impact of food cost on an operation is tremendous. It is reflective of food quality, value to the customer, and
management’s skill level. An accurate food cost percentage must be determined and then compared to
historical performance and industry averages. An accurate food cost percentage can lead to remarkable
savings and an improved bottom line.
BHM 3010, Introduction to Hospitality
The training required for restaurant employees varies by the type of food, the service,
UNIT x STUDY
expectations. In order to ensure employees have the necessary training, they Title
must be provided with training
materials, including the restaurant training manual and hands-on training in food safety, sanitation, and task
related job performance. This must occur in order to develop well-trained and informed employees, with the
ability to complete the duties related to their position.
Restaurant server training may differ drastically from back-of-the-house employee training, but the end goal is
the same: better trained employees to create the best customer experience possible. Employee training
typically includes several components that work together to create the overall program. These include the
employee handbook, health and safety procedures, and hands-on job performance, and they all work to
ensure that the establishment runs smoothly. The FOH is considered the customer contact area, requiring
employees to be trained in customer service standards and a high level of customer satisfaction. The BOH
requires training, but in the efficiencies of production standards. Food costs must be maintained within
acceptable levels, purchasing and storage of supplies monitored, food safety and sanitation practiced, and
the menu planned and marketed to attract customers and generate profits.
Spend some time in your favorite restaurant, not just eating but observing. If you can observe the kitchen
staff, that would be even better. Determine if the flow from the front of the house to the back is efficient. Are
people crossing over each other’s paths? Are the utensils and equipment in the correct order for maximum
efficiency? Can you identify any food safety/sanitation hazards or violations? It can be very interesting to say
the least. This can be very useful and provide you with information necessary to begin researching your own
food operation and help you to make informed decisions. Good Luck.
Walker, J. R. (2013). Introduction to hospitality management (4th ed.). Upper Saddle River, NJ: Prentice
Click here to view the Chapter 6 PowerPoint presentation or here to view a PDF of the presentation.
Click here to view the Chapter 7 PowerPoint presentation or here to view a PDF of the presentation.
Using the Business Source Complete database within the CSU Online Library, please locate and read the
Whitford, B., & Berrett, D. (2005). So you want to start a food business. Newsweek, 146(13), 54.
BHM 3010, Introduction to Hospitality
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