The Restaurant
Chapter 1
David K. Hayes | Allisha A. Miller | Jack D. Ninemeier
The Professional
Restaurant Manager
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Restaurant Industry
National Restaurant Association (NRA)
A professional trade and
lobbying group
representing nearly
400,000 restaurant
locations.
It also operates the
National Restaurant
Association Educational
Foundation (NRAEF).
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Restaurant Industry
National Restaurant Association (NRA)
Founded in 1919, the
NRA is headquartered in
Washington, DC.
Each May, it holds its
annual conference in
Chicago, IL.
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
A Brief History of Eating Out
Those who ate away from home
• Merchants involved in the trading of goods from
one area of the world to another
• Those traveling for religious purposes
• Those that ate out to entertain others or
themselves
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Modern Restaurant Industry Segments
Restaurant
Industry
Commercial
(for profit)
Noncommercial
(not for profit)
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Modern Restaurant Industry Segments
Commercial food service
Food service operations that are typically open to
the general public.
Noncommercial food service
Food service operations that are not typically
open to the general public.
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Commercial Restaurants
Segmented by Price and Service
Segmented
by Price and
Service
Quick Serivce
Family
Casual/
Fast Casual
Fine Dining
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Commercial Restaurants
Segmented by Menu Option
Segmented
by Menu
Option
Pizza
Mexican
ItalianSeafood
Asian
Steakhouse
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
USDA Beef Grades
Prime
(highest quality)
Choice Select Standard
Commercial Utility Cutter Canner (lowest quality)
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Planning for Success in the
Restaurant Industry
Concept
A clearly stated and well-thought out idea for a
restaurant.
Target market
A well-defined group of potential customers.
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Restaurant Plan
plan
A formal, written statement of business goals and
strategies for how those goals will be achieved.
Start-up funding
The money needed to open and sustain a
restaurant until it becomes profitable.
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Location
Concept
Menu
Design
Marketing
Financing
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qCover sheet
qDate of plan preparation
qOne- to two-page executive summary
qTable of contents
qDescription of the organization
qDescription of the restaurant’s concept
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qMarket analysis
qTarget market
qCompetitive analysis
qAdvertising and marketing plan
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qFinancial projections
qPre-opening financing
qRequired amount
qUse of funds
qSource of funds
qFunds repayment plan
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qFinancial projections
qThree-year balance sheet
qFor the legal entity developing the
restaurant
qFor the new restaurant
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qFinancial projections
q Three-year P&L statement
qYears 1–2: Monthly forecasts
qYears 1–3: Annual forecasts
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qFinancial projections
q Three-year cash flow statement
qYears 1–2: Monthly forecasts
qYears 1–3: Annual forecasts
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qFinancial projections
q Three-year cash flow statement
qYears 1–2: Monthly forecasts
qYears 1–3: Annual forecasts
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qRecommended appendices
qOrganizational chart
qSample menu
q Sample menu
q Copy of leases
q Copy of licenses
Book Title
Author name
© 2012 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
The Professional Restaurant Manager, 1e
David K. Hayes, Allisha A. Miller, and Jack D. Ninemeier
© 2014 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Preparing a Restaurant Plan
Sample Plan Content Checklist
qRecommended appendices
qCopy of fire permits
qCopy of insurance policies
qCopies of staff job descriptions
qBlueprints or floor plans
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