aboikis/Shutterstock Restaurant Operations 7 Learning Outcomes After reading and studying this chapter, you should be able to: • Identify key aspects of a restaurant manager’s job. • Describe restaurant operations for the front of the house. • Outline back-of-the-house operations. • Calculate basic food, beverage, and labor cost percentages.

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CHAPTER 7 Restaurant Operations manager’s job. Orientation/Training Recruiting/Training Human ResourceManagement and safety. sequence offunctionalareas from humanresources to sanitation job byfunctionalareas andtasks.Thisanalysisfollowsanatural nesses, hasformulated manager’s ananalysisofthefoodservice association, whichrepresents over500,000restaurant busi- The National Restaurant Association (NRA), the largest industry Outcome1: Learning Job Analysis Restaurant Manager us analyze thejobbyexamining thekey areas ofthejob. and requires strong leadership and organizational skills. First, let challenginganddemanding, own astake inthebusiness,isvery The jobofrestaurant general managerormanagingpartner, ifthey ship andorganizational skills. The jobofrestaurant general managerrequires strong leader 4. 3. 2. 1. 4. 3. 2. 1. Conduct on-site training foremployees. Plan training programs foremployees. Explain employeebenefitsandcompensationprograms. Conduct on-site orientation fornewemployees. Interview applicantsforemployment. manager/supervisor. Recruit newemployeesbyseekinghelpfrom district Recruit newemployeesbyadvertising. Recruit newemployeesbyseekingreferrals. Identify key aspectsofarestaurant -

Paul Maguire/Shutterstock ­Development andEmployee Supervision Scheduling forShifts 16. 15. 14. 13. 12. 11. 10. 7. 6. 5. 4. 3. 2. 1. 8. 7. 6. 5. 9. 8. 7. 6. 5. 4. 3. 2. 1. off, andsoon. Approve requests forschedulechanges,vacation,days sales andotherneeds. Call in,reassign, orsendhomeemployeesinreaction to effectiveness. Assign employeesto workstationsto optimize employee Make changesto employeeworkschedule. and maintenance person(s). Make workassignmentsfordiningroom, kitchenstaff, Determine staffingneedsforeachshift. Review employeeworkscheduleforshift. ­successful completionoftraining byemployees. Complete reports orotherwritten documentationon Conduct payroll signup. by anothermanager, employeeleader, trainer, andsoon. on-siteSupervise training ofemployeesthatis conducted Evaluate progress ofemployeesduringtraining. performance. Terminate employmentofanemployeeforunsatisfactory Authorize promotion and/orwageincreases forstaff. performance. Develop actionplansforemployeesto helpthemintheir writing. Put in results ofemployeeperformance ofobservation Identify anddevelopcandidates formanagementprograms. Conduct employeeandstaffmeetings. ­warnings forpoorperformance. Discipline employeesbyissuingoral and/orwritten standards guidelines. andequalopportunity employeestoObserve ensure compliancewithfairlabor Talk withemployees whohavefrequent absences. Counsel employeesonnonwork-related problems. Counsel employeesonwork-related problems. and security. employeebehaviorforcompliancewithsafety Observe ofemployees. ­performance Develop anddeliverincentiveforabove-satisfactory Discuss unsatisfactory withanemployee. performance ­satisfactory employeeperformance. employeesandgiveimmediateObserve feedbackon ­unsatisfactory employeeperformance. employeesandgiveimmediateObserve feedbackon 06/11/17 3:12 PM Restaurant Manager Job Analysis 131 06/11/17 3:12 PM ” Direct activities for opening establishment. Direct activities for closing establishment. Direct other managers at beginning and end of shift to with Talk and activities. information about ongoing problems relay inventory. Count, verify, and report Receive, inspect, and verify vendor deliveries. as necessary. levels and submit orders Check stock delivered. vendors concerning quality of product with Talk to sell products vendors who wish to Interview establishment. correct quality and act to Check finished product problems. get meals served effectively. to as expediter Work food lockers, rooms, kitchen, rest Inspect dining area, and parking lot. storage, Create and execute local establishment marketing establishment marketing local and execute Create activities. provide Develop opportunities to for the establishment services.community promotions. product out special Carry on facility and checks maintenance Conduct routine equipment. and checks on facility maintenance routine Direct equipment. of equipment. Repair or supervise the repair manager/ Review establishment evaluations with district supervisor. of equipment by outside contractor. repair the Authorize in facility and equipment. Recommend upgrades Ray Kroc, of McDonald’s, once spent a of McDonald’s, Ray Kroc, 9. 1. 2. 4. 5. 6. 7. 8. 1. 2. 3. 1. 2. 3. 4. 5. 6. 3. 10. 11. “ Marketing Management Marketing Operations Management Maintenance Facility Operations and Beverage Food ­Management couple of hours in a good suit with one of his managers cleaning up the park- restaurant soon Word ing lot of one of his restaurants. manage- that stores other tothe around got the parking lot and ends in the in begins ment bathrooms. Develop and implement action plans to meet financial Develop and implement action plans to goals. sessions. and training workshops off-site Attend Communicate with management team by reading and by reading with management team Communicate making entries in daily communication log. on cleanliness, food quality, person- reports written Prepare labor costs, and so on. sales, food waste, nel, inventory, by other establishment prepared Review reports managers. company head- from and letters Review memos, reports, office. quarters/main or devel- Inform district manager/supervisor of problems and performance of the opments that affect operation establishment. with company, ven- and answer correspondence Initiate dors, and so on. and so on. personnel records, reports, File correspondence, Establish objectives for shift based on needs of Establish objectives for shift based on needs establishment. - for exam shifts, performed work by different Coordinate and so on. maintenance, ple, cleanup, routine assigned by district manager/ special projects Complete supervisor. checklist. shift readiness Complete Discuss factors that impact profitability with district that impact profitability Discuss factors manager/supervisor. waste, for sales, labor costs, Check establishment figures and so on. inventory, Authorize payment on vendor invoices. payment on Authorize payroll. Verify drawers. Count cash bank deposits. Prepare of audits by management or Assist in establishment outside auditors. of shift. Balance cash at end for establishment. and loss reports profit Analyze 7. 2. 1. 2. 1. 3. 4. 5. 6. 1. 2. 3. 4. 1. 2. 1. 2. 3. 4. 5. 6. 7. Communication Planning Scheduling/Coordinating Administrative Management Administrative Cost Control Financial Management Financial Accounting M07_WALK4919_04_SE_C07.indd 131 12. Check daily reports for indications of internal theft. the same basic duties plus any special opening or closing 13. Instruct employees regarding the control of waste, portion requirements. sizes, and so on. An assistant restaurant manager does some of the duties of a restaurant manager, and generally there is both an opening 14. Prepare forecast for daily or shift food preparation. manager and a closing manager. Restaurants are traditionally organized by front and back Service of the house. The front of the house comprises the servers, 1. Receive and record table reservations. bussers, wine stewards, bartenders, and cocktail servers, while the back of the house includes the chef and kitchen 2. Greet familiar customers by name. cooks, dishwashers, stewards, dishwashers, receivers, and 3. Seat customers. storekeepers. 4. Talk with customers while they are dining. 5. Monitor service times and procedures in the dining area. Check Your Knowledge 6. Observe customers being served in order to correct 1. Name ways that new employees are recruited. problems. 2. Explain key tasks of administrative management. 7. Ask customers about quality of service. 3. Explain key tasks of operations management. 8. Ask customers about quality of the food product. 9. Listen to and resolve customer complaints. 10. Authorize complementary meals or beverages. 11. Write letters in response to customer complaints. Front of the House 12. Telephone customers in response to customer complaints.

13. Secure and return items left by customers. Learning Outcome 2: Describe restaurant operations for the front of the house.

Sanitation and Safety Restaurant operations are generally divided between what is 1. Accompany local officials on health inspections on commonly called front of the house and back of the house. premises. The front of the house includes anyone with guest contact, from the hostess to the bus person. The sample organization 2. Administer first aid to employees and customers. chart in Figure 7–1 shows the differences between the front and 3. Submit accident, incident, and OSHA reports. back of the house areas. 4. Report incidents to police. The general manager or restaurant manager runs the restau- 5. Observe employee behavior and establishment rant. Depending on the size and sales volume of the restaurant, conditions for compliance with safety and security there may be more managers with special responsibilities, such as procedures. kitchen manager, bar manager, and dining room manager. These managers are usually cross-trained in order to relieve each other. This comprehensive analysis of a restaurant manager’s job In the front of the house, restaurant operation begins with details all the major areas that a restaurant manager will deal creating and maintaining what is called curbside appeal, or with. Depending on the type of restaurant, more emphasis keeping the restaurant looking attractive and welcoming. Ray may be placed on one area over another – and that may Kroc, of McDonald’s, once spent a couple of hours in a good change from day to day. Next, we review the job of an assis- suit with one of his restaurant managers cleaning up the parking tant restaurant manager. Most restaurants go with an open- lot of one of his restaurants. Word soon got around to the other ing and closing manager. In either case, they perform much stores that management begins in the parking lot and ends in

General Manager

Opening and Closing Managers Back of the House Front of the House

Restaurant Operations Restaurant Kitchen Manager Bar Manager Dining Room Manager Cooks Bar-backs Hostess Prep cooks Bartenders Buspersons Expediter Cocktail servers Servers Receiving Dishwashing CHAPTER 7 FIGURE 7–1 Restaurant Organization Chart. 132

M07_WALK4919_04_SE_C07.indd 132 06/11/17 3:12 PM Front of the House 133 - 06/11/17 3:12 PM ” . The opening group of two or three of two or three group . The opening m . a —and to help—and to (neat, clean, and organized) . If the restaurant is quiet, servers may be . If the restaurant m . p Greet the guests. Greet and suggestively sell beverages. Introduce Suggest appetizers. orders. Take the guests’ liking see that everything is to Check to of the entrees. within two bites another drink. Ask if the guests would like drinks and suggest after-dinner Bring out dessert tray and coffee. Management involvement is vital to the is vital toManagement involvement the Bussers and servers may clear the entree plates, while serv- plates, Bussers and servers may clear the entree • • • • • • • of the table service, servers the seven steps areIn addition to servers may be sched- the lunch hour, during example, For Forecasting restaurant sales has two components: guest restaurant Forecasting

ers suggestively sell desserts by describing, recommending, or dessertsers suggestively sell by describing, recommending, also cocktails are showing the desserts. Coffee and after-dinner table service in take include to Suggestions for steps offered. the following: be NCO— to expected that hot food is served hot, and cold food is servedensure cold. start at 11:00 uled to people is joined by the closing group of the same number at same number at of the people is joined by the closing group 11:45 around Restaurant Forecasting by formulating operate Most businesses, including restaurants, sales and costs for a year on a weekly a budget that projects on sales, and and monthly basis. Financial viability is predicted business. of expected forecasts sales budgets are guest check. Guest counts or covers and the average - the res the number of guests patronizing counts or covers are To over a given time period—a week, month, or year. taurant the year is divided into the number of guests for a year, forecast . The server then takes server. The selling as suggestive is known This then takes the server begins orders, taking when Often, orders. the entree that from clockwise the orders and takes point at a designated which per know way, the serverpoint. In this will automatically ready, are a particularson is having When the entrees dish. a few He or she checks the table. the server brings them to and the guests’ liking see if everything is to to later minutes Good serv- another beverage. would like perhaps asks if they tables. pre-bus to when possible, also encouraged, ers are “ phased out early. When the closing group comes in, there is is comes in, there When the closing group phased out early. an provides This rally.” “alley or up, line meeting, shift quick a - discuss any promo sales figures, recent review opportunity to - res “86'ed”—the that are items any tions, and acknowledge that is not available. Recognition for a menu item term taurant the servers during the meetings, servingis also given to as boosters. morale success of a restaurant. Sirtravelalot/Shutterstock - Sarasota, FL Sarasota, ” Bruce Folkins, Marina Jacks, Marina Jacks, Bruce Folkins, Working together is the key to success in toin success together the key is Working Once inside, the greeter, or as some restaurants call them, a call them, restaurants or as some Once inside, the greeter, host- the guests, one critical function of the greeting Aside from maintain a book, or chart, showing the sections The greeters a certain number allocated servers are In some restaurants, themselves and offer a variety of bever Servers introduce ages and/or specials, or invite guests to select from the menu. the menu. select from guests to ages and/or specials, or invite “ chains have checklists that Most restaurant the bathrooms. the parking lot, of the house, each manager uses. In the front be maintained in good needs to including the flower gardens, may hold greeters the restaurant, As guests approach order. the 15th At the restaurant. the door open and welcome them to welcome greeters in Ft. Lauderdale, Fisheries Restaurant Street here!” you’re glad the guests by assuring them that “we’re guests appropriately ” (SPG), greets “smiling people greeter is a a table. If there and, if seating is available, escorts to them for their the guests’ names and ask will take wait, the hostess table preference. arriving guests among the sections or stations. rotate ess is to an even and timely distribution of guests—otherwiseThis ensures to sometimes asked one section may get overloaded. Guests are help available. This is done to even if tables are wait a few minutes kitchens havemost workload—because manage the kitchen’s much volume at one time. space and cannot cope with too limited Greeters occupied. are know which tables so they and tables may explain menus, and tables, present the escortto guests place excess Some may also remove special sales promotions. the table. settings from of the tables of tables, which may vary on the size depending Normally, five is the maxi- and the volume of the restaurant. within their section to servers rotate mum. In other restaurants, or four tables. cover three The front of the house includes anyone with guest contact, from contact, from of the house includes anyone with guest The front the bus person. to the hostess the restaurant business. the restaurant M07_WALK4919_04_SE_C07.indd 133 M07_WALK4919_04_SE_C07.indd 134 134

CHAPTER 7 Restaurant Operations restaurants andcafés. For example, Shopkeep isacloud-based chises, whileothersare better suited forsmallerindependent taurants. Someare forlarge restaurants andchainslike fran- There are several Point ofSaleSystems (POS)availableforres- Point ofSaleandSoftware Systems able, mustbededucted to calculate profit orloss. sales figures are determined, allexpenditures, fixed andvari- centages. Muchdependsontheaccuracy offorecasting. Once projections butalsoto predict staffinglevelsandlaborcostper 13 accounting periods,whentotaled, becometheannualtotal. forecasts are combinedto formoneaccountingperiod;the day, actualtotals are compared withtheforecasts. Four weekly check foreachmealto calculate thetotal forecast sales.Each multiplied by theamount of the average food and beverage for each meal. The number of guests forecast for each day is by thenumberofguests.Mostrestaurants keep suchfigures type ofrestaurant anditslocation. percent ofrevenue. This,however, according canvary to 50 day. Friday, Saturday, andSundayfrequently provide upto business gradually buildsto Friday, whichis often thebusiest of week,specialholidays,andprevious forecast materializations. forecasting isdonebytakinginto consideration mealperiod,day periods thenare broken downinto four7-dayweeks.Restaurant twelve 28-andone29-dayaccountingperiods.The or coversandtheaverage guestcheck. Forecasting restaurant saleshastwocomponents:guestcounts Restaurant forecasting isusednotonlyto calculate sales The In terms of number of guests, Mondays usually are quiet; Phil Date/Shutterstock average guestcheckiscalculated bydividing total sales 1 - and increased menupricesto compensate. MooCluck like Danny Meyerhavebegunpayingemployees$15perhour naturally haspeopleonbothsidesoftheissue.Restaurateurs includes thetopic of a$15perhourminimumwage.Thistopic A discussionaboutrestaurant inAmericanecessarily service Service Shots Studio/Shutterstock to extract highersalesandgiveguestsaconvenience. Subway, and Domino’s have turned to Pizza, order-ahead apps casual restaurants, among them Starbucks, Panera Bread, relax atthebarorwherever. Goingonestep further, somefast- which eventexts guestswhentheirtable isready, sothey can systems. Othersystems includeDineTime, Cake, andQuora, system appinCloud thatoffersrestaurants alternatives to paid ing. Thenthere isthefree Table Agentrestaurant reservation that helpsbringguestsinto arestaurant andaidsintheirseat- table reservation times.NoWait isanon-demandmobileapp rant’s Web site. Guestscanseecurrent availabilityandnext time andavailabilityrequest reservations from arestau- cloud-based reservation system thatenablesgueststo see ­reservations, butalsorestaurant operations. Oracle isalsoa agement system foraniPad. Itcanmanagenotonlytable monitor sections. tablestatus,andassignserver smarter tablemanagementwithfloorplansto pre-assign tables, VIP’s, restrictions, dietary andspecialevents.OT alsoenables stores usefulguestinformation,suchasseatingpreferences, even whentherestaurant isclosed,atjust$0.25percover. OT advantage ofOpenTable isthatguestscanmake reservations, restaurants anditcoststhem$2.50percover(orguest). One day wishes.OpenTable ismostlyusedbyupscalefull-service and after their visit (you may receive a questionnaire)- or birth tions. Thisallowsoperators to communicate withguestsbefore a cloud-basedPOSsystem, asdoseveral othercompanies. simple cashregister. NCR,along-standingprovider ofPOS,has It cancomewithasquare standthattransforms aniPad into a whereas Square restaurants isgoodforquick-service orcafés. tory, manage employees,market to guests,andanalyze data, POS system foriPads thatcantailormenus,monitor inven- Great addstremendous service valueto thediningexperience. Next Table isacloud-basedreservation andtableman- Open Table (OT) manageswalk-ins,waitlists,andreserva- 06/11/17 3:13 PM Front of the House 135 06/11/17 3:13 PM elements This is a very 3 The food is cooked in the kitchen, cut, in the The food is cooked is a trolley-like table with a gas burner for gas burner with a table is a trolley-like A gueridon seat. - and expen impressive the most This is cooking. tableside and cost of training the higher service.sive form of Due to service , and given serversemploying do French who can gets by the time the guest the food is cold that sometimes in except used today service eat, this form of is rarely to very service formal situations. Russian Service: a servingdish, and beautifully garnished. The placed onto served the guests and individu- to dish is then presented with a serving plate guest’s the onto ally by lifting the food spoon and fork. Russian service can be used at a formal Russian and gloves. the servers use white where restaurant get the food same challenges: to the service share French it priced keep still hot, and to the guests quickly so it is to Russian service at very also is used only formal reasonably. than American service. it also costs much more restaurants; a attend to invited servers are in Las Vegas, Posterio, At Good servers quickly learn to gauge guests’ satisfaction lev- gauge guests’ Good servers quickly learn to of good service is when the serverAnother example does Union celebrated City’s owner of New York Danny Meyer,

one-and-a-half-hour wine class in the restaurant; about three- one-and-a-half-hour wine class in the restaurant; this benefit from of the 40-member staff routinely quarters also rewarded The best employees are additional training. which could prizes, with monthly, semi-annual, and/or annual a night’s at Posterio, be $100 cash, a limousine ride, dinner or a week in Hawaii. Servers at Hotel, lodging at the Prescott the various ­ role-play restaurants some San Francisco of service such as greeting and seating guests, suggestive sell- suggestive guests, seating and serviceof greeting as such a ensure to methods of service, and guest relations ing, correct - restau A good food server in a top positive dining experience. in many cities can earn about $50,000 a year. rant guests have everything ensure els and needs; they check to better, Even them. before placed is entree their as need they if the guest has example, guests’ needs. For they anticipate one clean a then appetizer, the eat to knife entree the used right side. In the guest’s be placed to should automatically then and the entree the guest should not receive other words, or she needs another knife. that he realize ask everyoneeating what. The at the table who is not have to a seating plan so that or make server should either remember of guests. placed in front automatically dishes are the correct and awards of 25 James Beard and recipient Café Square - restau popular most Zagat the on years 16 plus Stars, 4 Michelin the James Beard from list and Outstanding Service Awards rants 95 employees—from gives each of the restaurant’s Foundation, month)a allowance ($50 each annual $600 chef—a person to bus and critique the experience. eat in the restaurant to smart move because any comments or observations come from hospitality” basedis “enlightened His Danny. from not and peers run- to upon the belief that putting your own employees first is key - 14 restau ning a meaningful and sustainable business. Danny’s Gramercy to Café, Union Square the celebrated from range rants North End Grill, Marta,Blue Smoke, The Modern, and Tavern, Paul Cowan/Shutterstock Paul One advantage is that employees 2 This service- is used in very formal res More than ever, what American diners really want to order order want to what American diners really than ever, More serviceAmerican food is the which method in a is States in the United Other types of service used less often Service: French on platters arranged is attractively the food where taurants the table by servers and to in the kitchen and brought of the which the preparation guests, after to presented guest’s on a gueridon table beside the food is completed American service is a method in which the food is prepared and American service the food is prepared is a method in which the in the kitchen, carried into plates placed onto decoratively guests. and served to dining room, are more engaged in their work and that people don’t leave, engaged in their work and that people don’t more are - res is not a constant issue. Several which means that training touch- among them, have introduced McDonald’s taurants, self-service kiosks. Many other chains, both quick andscreen full service, have engaged tablets as a solution for rising labor servicecosts that won’t adversely impact the guest experience. this is not on the often, when eating out is good service. All too bad service will menu. With competition, however, increased service adds Great in American restaurants. not be tolerated something most the dining experience; value to tremendous pay for. willing to guests are in the kitchen, plates placed onto and decoratively ­prepared American guests. and served to room, the dining into carried service is a preferred less formal—yet professional—approach by today’s commitment guests. The restaurants’ restaurant service is evidenced by the fact that most have increased to tak- order not merely for new employees. Servers are training A server who the salespeople of the restaurant. ers; they are about the menu can seriously hurt business. is undereducated many in and Canada, and States United the in Restaurants other parts of the world, all use American service. include the following: is a quick service burger joint that is paying $15 per hour andis a quick service burger multitask – one They do it with employees who making a profit. buns, make they also bake person is not just flipping burgers; and free- burgers grass-fed made-to-order sauces, and prepare sandwiches. chicken range M07_WALK4919_04_SE_C07.indd 135 M07_WALK4919_04_SE_C07.indd 136 136

CHAPTER 7 Restaurant Operations Planning, organizing, andproducing foodare criticaltasksforthekitchenmanager. One, orGrey Gooseintheirvodkaandtonic. tries to “sell”theguestona higher-priced vodkalike Stoli, Ketel and tonic, askingfor a lower-priced “well”vodka,andthe server erage sales.Upsellingtakes placewhenaguest orders avodka to gowithred meat,are likely to increase theirrestaurant’s bev- complement afishdish,orpinotnoircabernetsauvignon whosuggestabottleoffuméblanctocials. Likewise, servers garitas ordaiquirisbefore goingonto describe thedrinkspe- bereceptivecertainly to suggestions from competent servers. The objecthere is to into turnservers sellers.Guestswillalmost thing to theguestthatheorshehasneverconsidered before. their needsanddesires. suggestssome- Itmaybethattheserver isintunewith it! In fact, guests may feelspecial that the server techniques, provided are servers properly trained notto overdo guests are withsuggestiveselling notoffended oruncomfortable better, more effective, and easier way to boost profit margins. Most food andbeverage sales.Manyrestaurateurs cannotthinkofa Suggestive sellingcanbeapotent to weaponintheeffort increase Suggestive Selling will probably stylesimilarto Wei. optfor aservice ChipotleorPie the likelihood ofincreased laborandhealthcosts,more restaurants the numberto isordered. atleastaninebythetimedessert Given andkitchenstaffworktogethera diagnosis.Servers to to try elevate grumpy, oredgy”)oneachticket. Anythingbelowasevenrequires and jotanumber(1to 10)andsometimesadescription(“elated, Virginia, are servers required to table gaugethemoodofevery munity bybeinganationalfigure inthefightagainsthunger. thecom- Shake Shack.Dannyalsomakes timeto giveback to 3. 2. 1. of communicationbetweenthefront andbackofthehouse. For arestaurant to besuccessful, there mustbeclearlines On ahotday,forexample, cansuggestfrozen servers mar At thecriticallyacclaimedInnatLittleWashington inWashington, Explain thepurposeofforecasting. service. Explain thesuggestionforsteps to take intable Define curbsideappeal. CheckYour Knowledge

marlee/Shutterstock - station, saladsauté station,andpizzastation—justa layout. Itmightconsistofabroiler station,pickuparea, fry cooking line,expediter, bararea. station,andservice dessert area, walk-ins,thefreezer, storage, dry prep line,saladbar, designs fortheirkitchens.Thelayoutconsistsofthereceiving restaurantsdesign. Mostfull-service havesimilar layoutsand up according to thebusinessprojected aswellthemenu to Thekitchenlayoutisset andduringtheactual mealservice. times allowsthelinecooksto dothefinalpreparation justprior ofthemorningandafternoon.part Taking advantageofslower of prepared items. Mostoftheprep workisdoneintheearly which willbringtheprep (preparation) area upto theparstock will havealready beendonefortheday’s production schedule. each menuitem. As describedearlier, ordering andreceiving expected volumeandthebreakdown ofthenumber sales of same periodintheprevious yeargiveagoodindicationofthe volume ofbusinessforthenext fewdays.Salesduringthe begins theproduction process bydetermining theexpected quality isnoeasytask.Thekitchenmanager, cook,orchef Planning, organizing, andproducing foodofaconsistently high Food Production involvement, managementfollow-up,andemployeerecognition. food cost analysis (internal controls), production, management the backofhouseincludestaffing,scheduling,training, nized. Some of themain considerations in efficiently operating restaurant,full-service soitmustbewellmanagedandorga- inthekitchen.Thekitchenisbackboneofevery particularly ful restaurant is having a strong back-of-the-house operation, accounting, andcontrol. ing, storing/issuing, food production, stewarding, budgeting, not normallycomeincontact.Thisincludespurchasing, receiv- ager andtheterm refers to alltheareas withwhichguestsdo The Outcome3: Learning Back oftheHouse The cooking line is the most important part ofthekitchen part The cookinglineisthemostimportant The kitchenmanagercheckstheheadline-cook’s order, aspectstoOne ofthemostimportant runningasuccess- back ofthehouseisgenerally runbythekitchenman-

Hannamariah/Shutterstock Outline back-of-the-houseoperations.

Alex Staroseltsev/Shutterstock 06/11/17 3:13 PM Back of the House 137 - 06/11/17 3:13 PM . to ensure that the cooks are prepared to handle the the handle to prepared are cooks that the ensure . to m . a The first step in creating the production sheets is to count count sheets is to the production in creating The first step Ensuring adequate training is necessary the suc- because training Ensuring adequate test.a passing after stop not does however, Training, When determining production, par levels should be be should levels par production, determining When muchhow see to checks kitchen the rush, lunch the After Production Procedures Production the success of a restaurant to in the kitchen is key Production on the menu and how much the recipes to directly since it relates - the pro Thus, controlling the menu. produce on hand to is product such a task, production undertake is crucial. To duction process broiler, station, for example, for each created sheets are control dish, and dessert. With prep, the con- fry, pantry,sauté, window, sales. to set up for each day according sheets, levels are trol - the produc on hand for each station. Once the products to required the amount of product determined, tion levels are calcula- is decided. Once these the level for each recipe reach the cooks. It is handed to the sheets are completed, tions are arrive, cooks the before these calculations make importantto time that is needed before considering the amount of prep is open only instance, if a restaurant For opens. the restaurant should be on hand by enough product for lunch and dinner, 11:00 be qualified and experienced in the kitchen. Often, the mostthe Often, kitchen. the in experienced and qualified be are Such trainings hires. new train used to are chefs competent Some include study material. on the job and may usually done a written complete to new hires may even require restaurants process. the training through skills acquired evaluating the test, and the hands of the trainer business lies in the cess of the their when they begin trained properly If employees are trainee. be spent on cor and money will need to employment, little time employ- also helps in retaining training Thorough errors. recting of time. ees for longer periods the growth of all the employees is critical to Developing the skills A the restaurant. kitchen and, ultimately, and success of the - delegating duties or proj may consist of development program their horizons within expand to the staff, allowing them ects to - pro include duties Such business. restaurant the and kitchen the - schedule writing, and train ordering, jections of sales, inventory, on the running ofing. This will help management get feedback in works program the kitchen and on how well the development and growth Also, this allows for internal their particular operation. is the trainers and people who train Having “trainers” promotion. quality exceptional goal of offering the restaurant’s important to and service. lunch crowd. help This will sales trends. to changed weekly according contrib- is a large levels. Waste waste and minimize control should the kitchen therefore, food cost; increasing to utor it through make levels necessary to the product determine have a particular shelf life, and if the Products only one day. within and does not sell the product kitchen overproduces importantly, this More away. its shelf life, it must be thrown - the custom reach to product allows for the freshest practice ers on a daily basis. was sold and how much is left for the night shift. (Runningproduct - Order it well. Order Receive it well. it well. Store the recipe. it to Make Don’t let it die in the window. Problems can also be eliminated if a staffing plan is created if a staffing plan is created can also be eliminated Problems The kitchen will also be set up according to what the cus- to according will also be set up The kitchen of the areas for success in all a prerequisite Teamwork, necessary, are and performance standards While organization is having and teamwork of organization Another example 1. 2. 3. 4. 5. Due to a high turnover rate, implementing a comprehensive implementing a comprehensive a high turnover rate, Due to should, of course, kitchen. Trainers is vital in the program training staff the kitchen, rather than understaff it, for two reasons. First, than understaff it, for two reasons. staff the kitchen, rather call than it is to send an employee home it is much easier to employees on hand allows someone in. Second, having extra and development, which is becoming a widely for cross-training used method. according adjusted be should levels These levels. needed set to the smooth crucial to monthly basis. Also, on a sales trends to This means staff. running of the kitchen is having a competent stations on the line, putting the best cooks in the appropriate service,speed of in the will assist which and food quality, the the quality of the operations. and Development Training Staffing and Scheduling and Staffing crucial for the success- staffing is absolutely proper Practicing have enough employ- ful running of a kitchen. It is important to as a whole, to enable the restaurant, ees on the schedule to over to better it is handle the volume on any given shift. Often Kitchen/Food Production Kitchen/Food few of the intricate parts that go into the setup of the back of back the of setup the parts into go that intricate the of few all are equipment and its the kitchen of size The the house. and restaurant for the the sales forecast to designed according well equipment needed as the The menu dictates by the menu. level of the cooks. as the experience guests if example, For frequently. most order and prefer tomers and the broiler of size the items, sautéed or broiled eat more cope with the demand. to must be larger sauté industry, is especially important in the hospitality and tourism builds, and unless pace, pressure the hectic kitchen. Due to is food that be will result the excels, team the of member each or both. standard, delayed, not up to - and the cooking that cre with the prepping it is helping each other drop to we can’t afford race; a relay just like “It’s teamwork. ates - Coast restau China of manager kitchen Lu, Amy says baton,” the an in the back of the house is like Angeles. Teamwork in Los rant the harmony. playing in tune, each player adding to orchestra for running a kitchen: five rules of control see a kitchen line being overloaded, yet every- It is amazing to and serv- succeeds in preparing when the team one is gratified ing quality food on time. M07_WALK4919_04_SE_C07.indd 137 M07_WALK4919_04_SE_C07.indd 138 138

CHAPTER 7 Restaurant Operations And fluctuationinstandards leadsto guestcomplaints. a dishwilltaste onewaytoday butbequite different tomorrow. and minimize waste.to important Itisvery usethem;otherwise, pes are developed for each menu item to maintain consistency tois important follow the recipe at all times. Standardized reci- down, consistency islost,andfoodcostgoesup.Thatwhyit tion) to follow. Whenonedeviates from therecipe, qualitygoes role infoodcost.Everyrecipe “spec”(specifica- hasaparticular how thecooksuseproducts, sinceproduction playsakey negatively impactingtherestaurant andthecustomer. If theyare notchecked out,theymightslideontheirproduction, out thecooksandholdthemaccountableforproduction levels. all stations,thecooksmaybechecked out.Itisessentialto check “86” anythingonthemenu.)After allproduction iscompleted on production procedures are followed, a restaurant will not have to out of a product is unacceptableandshouldnot happen. Ifproper Introducing The useofproduction sheetsisalsocriticalincontrolling 9:00–On agoodday,theproduce arrivesat9:00 cate production sheetswithpriorityitems circled. 8:00–The firstcooksbeginarriving;greet them and allo - portioning). fry/seafood try, baker preparation, linepreparation: sauté/noodles, pan- hot sauce/expediter, coldsauce,vegetablepreparation, 7:15–7:40–Set production levels forallstations(broiler/ ness. as clogsinburners,stoves/ovens, etc.)foroverall cleanli- readiness. prepare Dideveryone enough? 10:45–Final checkofthelineandproduction to ensure • • is theclosingpersonformorningshift. The sauté cook,who is lastto come in,arrives. He or she 9:30–11:00–Follow uponproduction. is stored properly. prices matchthequotationsheet),andthatproduce Check forquality,quantity,accuracy (makingsure the 7:00 tioned anddated correctly). correctly (e.g.,turkey dicedto therightsize andpor ness, andthatwhatisinthestationprepared seafood), theshelflifeofproducts, general cleanli- items (e.g.,plasticdraining and underpoultry inserts Check thestationsto ensure thestorage ofprepped standardized recipes), andproduction accuracy. Follow uponcleanliness,recipe adherence (using a . m .–Arrive. Checktheworkofcleaningcrew (such ­Kitchen Manager Jose Hernandez, a . - m . knowledge isgained,more confidenceisacquired, andmore is ajobdescriptionfortypicalassistant restaurant manager. are to thesuccessfulrunningofbackhouse.Figure 7–2 and quality. This shows the staff how serious andcommitted they constantly bewalkingandtalkingfoodcost,cleanliness,sanitation, food quality ismore apparent and consistent. Managers should they are prone to dowhattheyneedto bedoingatalltimes,and when thingsare rushed.Whenmanagementisvisibleto thestaff, in the other operations of the kitchen, just as they should be helping “on theline,” assistingthestaffinpreparation ofthemenuand that theybe going oninthebackofhouse.Itisalsoimportant cess ofarestaurant. Managementshouldknowfirst-handwhatis As inanybusiness,managementinvolvementisvitalto thesuc- and Follow-Up InvolvementManagement As managementspendsmore timeinthekitchen, more 4:00–4:15–Welcome the 5:00–Hand overto the until 2:30 Precook some chicken breasts for salads. Monitor lunch Pre-toast bunsforburgers andholdinheated drawers. 11:00–2:30–All handsondeck.Jumpthefirstticket. the stocking forthe 2:30–3:15–Complete changeoverofthelineandcheck • • • • • • • • • • pan inserts (BBQsauce,etc.). pan inserts Focus onchangingovertheline,changefood the day. Decide whatproduction isleftfortheremainder of Determine whoneedsto getofftheclock. Be responsible for cleanliness. Thank the of food,labels,anddaydots,lidson. Reorganize theproduce walk-in.Checkthestorage in orrefrigerator. Check thattheproduct isreplaced inthestore walk- cleanliness. Check thedishwasherarea andprep linefor Final prep portioning. Place produce order (asadouble-check,askthe p . m . crew whattheymightneed). p . m . a . m . crew andsendthemhome. p . m p . crew. . m p . . manager. m . crew.

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so servers general so equipment with each other with guests with the hostess/host with the manager with the cashier with the kitchen per manager and the schedules and requirements. Observes with Studies satisfactions, manager, and ommendations to the manager. Observes and mendations provements needed. Anticipates assures availability of same. Inspects, Ensures contain, number of ounces per portion. Periodically meet needs as they arise. Discusses priate times. Defines persons their responsibilities for relationships cilities, the provide excellent service before each meal period. provide excellent service before each meal Anticipates company menu policies. assure full understanding of new items. Conducts Service 1. 2. 1. 2. 3. 4. 5. 6. 7. 8. 9. A. Planning and organizing POSITION TITLE: Assistant Manager TITLE: Assistant POSITION TO: Manager REPORTS OVERVIEW POSITION AND DUTIES RESPONSIBILITIES the stantly B. Coordinating satisfaction and dining pleasure. satisfaction and dining Under respect is earned. Employee–management interaction produces produces is earned. Employee–management interaction respect work ethic among employees, a sense of stability and a strong a positive working and promoting in higher morale resulting being are that policies and standards ensure To environment. upheld, management follow-up should happen on a continual held account- basis. This is especially important when cooks are and when other staff specifications and production able to Job Description for an Assistant Restaurant Manager. FIGURE 7–2 Job Description for an Assistant Restaurant M07_WALK4919_04_SE_C07.indd 139 M07_WALK4919_04_SE_C07.indd 140 140

CHAPTER 7 Restaurant Operations mine thefollowing: Restaurant operators setuppurchasing systems thatdeter thattherestaurantservices needsinorder to itsguests. serve Purchasing forrestaurants involvesprocuring theproducts and Purchasing product, which is called order andthepersonreceiving thegoods.Thisavoidspossible separate taskandresponsibility betweenthepersonplacing automatically reorders apredetermined quantityoftheitem. on handfallsbelowaspecifiedreorder point,thecomputer system must be onhandatall times. Thisis called aparstock. If the stock the casinohadstampofrestaurant onthem? of thesuspects.Would youbelievethatsomeofthebottlesat liquor. Thiswasdiscovered whenthepolice“interviewed” some the newcasinoandwere payingthemoffwiththerestaurant’s several atthe restaurant servers hadincurred gamblingdebtsat the spiritsandfoundthemdiluted. Itwaslater discovered that liquid. Eventually, external auditors checked theproof content of They removed someofthealcohol,thenaddedwater orcolored between theiron postsofthegate and took several bottlesout. as adoorto thebar. Thethievesgotafishingpoleandinserted it author worked. Itwasaniceoldplacewithwrought iron gates One story aboutstealing happened atarestaurant atwhichthe ity because temptation is everywhere in therestaurant industry. it theft-proof. Instead, employinghonest workers isatop prior tion. However, merely computerizing asystem doesnotmake trol oflossmaybedonemanuallyorbycomputer oracombina- fied bythepurchaser. content, andnumberofdaysagedare allfactors thatare speci- ing meat,forexample, thecut,weight,size, percentage offat • • • • • It isdesirable forrestaurants to establishstandards foreach In identifying who will do the buying, it is most important toIn identifyingwhowilldothebuying,itismostimportant An efficientandeffectivesystem establishesastock levelthat Establishing systems thatminimize andmaximize effort con- Who willdothereceiving, storage, andissuingofitems in motion Who willdothebuyingandkeep thepurchasing system stock andreorder point) The amountofeachitem thatshouldbeonhand(par age) andlossesfrom other sources loss from withintherestaurant (theft,pilferage, orspoil- Systems thatminimize andmaximize effort control of Standards foreachitem (product specification) FIGURE 7–3Food CostControl Process. product specification. When order Food CostAnalysis Menu Planning Forecasting Sales 4 - - - Purchasing Service chasing, whichincludesthefollowingsteps. Las Vegas, suggestsaformalandaninformalmethodofpur ators usesimilarprepurchase functions. Both chainandindependent restaurants oper andfoodservice the specifications for theingredients to ensure consistency. at the corporate officenotonlydevelopthemenubutalsowrite the unitmanagerfrom havingto order individually;specialists specifications determined atthecorporate office.Thissaves who are ofachainmayhavethemenuitems part andorder goods together withthechef(orchef’s designee). order, andathird personresponsible forthestores receive the the order, themanagerormanager’s designeeplacethe theft. Thebestwayto avoidlossesisto havethechefprepare (see Figure 7-3). ators andtheinformalonebyindependentrestaurant operators Issue foodsuppliesfor Evaluate andfollowup Inspect/receive deliveries, Award contract andissue Tabulate andevaluate bids Issue invitationto bid Establish bidschedule Develop purchase order Formal Professor EmeritusStefanelli attheUniversityofNevada, • • • • • Commercial (for-profit) restaurant operators andfoodservice The formalmethodisgenerally usedbychainrestaurant oper production andservice transactions ininventory inventory stores, andrecord orderdelivery from thequantity required to produce menus. Identify items to purchase bysubtracting stock levels Determine inventory stock levels. purchases. Write specificationsanddevelopmarket orders for menus. Determine qualityandquantityneededto produce Plan menus. Production Receiving Storing Issuing Issue foodsuppliesfor Evaluate andfollowup Receive andinspect Select vendorandplace Quote price Develop purchase order Informal production andservice record transaction deliveries, store, and order 5 - - - 06/11/17 3:13 PM Cost Control 141 06/11/17 3:13 PM Calculate basic food, beverage, basic food, beverage, Calculate Check Your Knowledge Check Your

List the five rules of cost control and explain why and explain List the five rules of cost control important. they are set up purchasing operators Why do restaurant systems? important in back of house training Why is thorough operations? Five Easy Pieces Five Easy In the movie Nicholson goes , star Jack Barber/Shutterstock Jim 1. 2. 3. Cost Control Learning Outcome 4: - them; employ with the restaurant into bring bags to employees be garbage! You’ll the yes, checking and, good accountant; ing a - dishonest peo find in the garbage—some what you will amazed valuable items remove way to garbage as a constant ple use the garbage area. the from later and collect them the restaurant from toast. of whole-wheat order side a orders and restaurant a to they do not servethat clear it makes whole-wheat waitress The salad that the chicken on the menu Nicholson notes toast. The annoyed wait- whole-wheat bread. sandwich comes on - “No substitu that reads a sign in the restaurant points to ress anyone.” service to refuse the right to reserve tions” and “We salad sandwich on whole- chicken a Jack Nicholson orders mayo, hold the hold the to the waitress but tells wheat toast, whole- the him just bring and salad, chicken the hold lettuce, the hold should she where asks she Unwisely, toast. wheat “Between responds, sarcastically salad. Nicholson chicken leaves, a very he dissatisfied guest. note your knees!” On that and labor cost percentages. . to m . a - specifi the product of as a result comes order purchase A Items should only be issued from the stores on an authorized on an authorized the stores only be issued from should Items - rota of ensuring stock FIFO is a simple but effective system should maintain strict controls. Obviously, restaurants is maintained on food costs by having the A tight control is a point of control in the restaurant operation. operation. restaurant in the control of a point Receiving is cation. As it sounds, a purchase order is an order to purchase a purchase to is an order order a purchase As it sounds, cation. price. Many restaurants at a specific certain of an item quantity basis. regular a on need they items for orders purchase develop samples and quotations, for suppliers to sent then are These canned items example, evaluations. For sent in for product are have varyingit is the drained liquid. Normally, amounts of operator. restaurant the to matters that weight of the product the operator vendors, several from comparing samples After needs. that best suits the restaurant’s can choose the supplier Storing/Issuing must be kept Records a problem. is often of the stores Control than one If more or out of the stores. going into of all items to know where it is difficult to the stores, person has access to in case of losses. attach responsibility person. One restaurateur signed by the appropriate requisition the to issues stores who has been in business for many years in the production is kept kitchen on a daily basis. No inventory some, this may be To the stores. is no access to and there area a good food fault the results: to but it is hard control, overdoing should have a date the stores that enter All items cost percentage. using the first in–first out (FIFO) system. stamp and be rotated purchases, tion. This is achieved by placing the most recent do this can to Failure purchases. behind previous in rotation, in spoilage. result and regularly include taking inventory controls Better-known a For and labor cost percentages. calculating food, beverage, be successful, management must “manage” by to restaurant them and labor costs and keeping food, beverage, controlling based on budget. in line with company expectations done by a person other than the person who orders receiving - one res At the food—this lessens the chance of over-ordering. wasit manager, beverage and food a as worked I where taurant receiving; and ordering the doing was chef the that discovered restaurant was done at “another” some of the receiving however, say, the chef was let Needless to brother! owned by the chef’s reordering include using a “par stock” go. Other strict controls for employees and not permitting using one entrance/exit system; Receiving specifies the day operator the restaurant When placing an order, 10:00 be made (e.g., Friday, and time for the delivery to 12:00 noon). This prevents deliveries from being made at incon- at made being from deliveries prevents This noon). 12:00 venient times. that the quantity, quality, ensure is to The purpose of receiving The quantity and quality relate as ordered. exactly and price are . recipe specification and the standardized order the to and the type of food and beverage Depending on the restaurant the to issued directly are some perishable items system, control storage. go into items kitchen, and most of the non-perishable M07_WALK4919_04_SE_C07.indd 141 M07_WALK4919_04_SE_C07.indd 142 142

CHAPTER 7 Restaurant Operations Introducing eral manageralsoconductsemployeereviews andtraining. help keep labor costs to about 20 percent of sales. The gen directly responsible forproper staffingfortheperiod.Thiswill the employee schedule;however, the general manager is still staffing oftherestaurant. Thefloormanagersusuallywrite being met.Thiswillkeep operations runningsmoothly. managers to ensure that all policies and regulations are and theotheremployeesofrestaurant. also incharge ofthefloormanagers, the kitchenmanager, for all the operations in the restaurant. General managers are The general managerofarestaurant isdirectly responsible Duties andResponsibilities • • • as well.Someoftheseinclude: each restaurant; however, there are commonalities certain The expectations of the general manager are different in oftheGeneralManager Expectations C Chain Restaurant General Manager Chris Robinson agers andisresponsible forupholdingthecompanycredo. expected to bearole modelforalltheemployeesandman ings, andguesttablevisits.Asthegeneral manager, Chrisis the daybyconductingfoodlinechecks,employeeshiftmeet ability. Chris’s responsibilities are accomplishedthroughout staffing andtraining, guestsatisfaction,andrestaurant profit mately responsible forfoodsafetyandquality,employee for theweek.Regardless ofwhenChrisworks,sheisulti

Another important dutyistoAnother important organize andcontrol the The general managershouldalwayscheckonthefloor providing better to service theguests. keep the employeeshappy,butitwillalsocontribute to restaurant Thiswillnotonly isofutmostimportance. in therestaurant. Havingapositiveenvironment inthe General managerspromote goodmorale andteamwork order to produce sufficient profit forthe restaurant. cost, andbeverage cost.Theseareas are controlled in the periods.Thenumbersanalyzed are food cost, labor General managersare expected to rungoodnumbersfor regional directors inmajorcorporations. General managersanswerdirectly to theownerorto swing (11 hris worksacombinationofopen(typically7 hris depending on the needs of the business and her goals depending ontheneedsofbusinessandhergoals a . m .–10 p . m .), andclose(5 ­General Manager The Restaurant p . m .–3 a a . m . m .–6 .) shifts, .) shifts, p . m .), .), - - - - -

The followingresults camefrom achainrestaurant. These tance. Every restaurant has different numbers to make. Running agoodpaceintherestaurant isofabsolute impor Budgeted CostsinaRestaurant • • • following qualifications: A general manager has the General Manager Qualifications fora labor cost. will increase willsufferandovertime thethen theservice In contrast, ifthere are notenoughemployeesworking, ­business thatisdone,thenthelaborcostwillbehigh. there are too manyemployeesworkingonashiftforthe underscheduling haveadirect effectonthelaborcost.If of the restaurant. For one thing, overscheduling and Appropriate scheduling plays a key role in the success Scheduling theRestaurant these three key areas. of the restaurant. toThis is why it is so important focus on receives alarge bonuscheckforcontributing to theprofit When thegeneral managerrunsgoodnumbers,heorshe is where therestaurant makes ordoesnotmake aprofit. centages fortherestaurant isthetop prioritybecausethis areas to focusonfortheupcomingweek. Makinggoodper age cost;however, thefoodcostandlaborare two given week. results reflect theirgoalsversusactualnumbersrunfora Beverage Cost Labor Cost Food Cost

discriminate. with all people,befairwithallemployees,andnot The general managershouldbeableto getalong ­restaurant familiarwiththem. andbevery He orsheshouldhaveworked allthestationsina knowledgeableabouttherestaurantvery business. He orsheshouldbe As canbeseen,thisrestaurant didwellwiththebever

19.0 19.9 27.0 Goal John Lund/Marc Romanelli/Getty Images Romanelli/Getty Lund/Marc John Actual 18.2 20.8 27.2 Variance - + + 0.8 0.9 0.2 - - - 06/11/17 3:13 PM Cost Control 143 06/11/17 3:13 PM %

Here Here 7 6 25% 20% 4 . 6.28% 7 16.19% 6 % Cost of Total

= 0 0 0 0 0 0 0 1 1 0 1 al t 1 * * * o * T % 0 0 0 5 0 0 0 0 2 4 4 4 0

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4 1 4 4 5 1 4 1 1 2 1 . , , , 0 , 6 0 0 Calculation 9 2 5 8 = 8 9 3 2 , , ,

8 2 , 5 8 0 0 2 8 3 2 0 5 $ $ $ $ 4 3 , , 1 5 4 3 1 $ $141,400 $ Cost $22,896 $35,350 $28,280 $ 8,892 A labor cost of 25 percent means that for every dollar of sales,A labor cost of 25 percent and each cost has 100 percent, sales are Given that total Another important part of restaurant control is stopping is stopping control Another important part of restaurant In the above example, the food and beverages sales are sales are food and beverages the In the above example, Food Total Sales Total 25 percent goes to cover labor costs. Other operating costs include cover labor costs. Other operating goes to 25 percent non-food or labor costs such as office ­ clean- light and power, knives, forks, spoons, table napkins, heat, lease or mortgage, and legal music, menus, accounting ing, rent, costs other operating fees, licenses, uniforms, and so on. Total sales. of 20 percent 14 to from range costs would of restaurant it, an example from be deducted to this: look like Labor Other Beverage - restau from steal can employees ways many the of few a are up sales and tear under-ring employees Some restaurant rants. of drinks for a round if an order example, For ticket. the order and puts a $16.95, the employee rings up $6.95 comes to is over by that the draw swizzle stick in the till as a reminder at the end of eight swizzle sticks in the draw are $10. If there leaving 32.53 percent for any other costs, taxes, and profit. for any other costs, taxes, leaving 32.53 percent put it, “In each of operator employee theft. As one experienced at, someone was stealing.” I worked that the restaurants from a low of 18 on up to 30 percent, with an average around around an average with percent, 30 to of 18 on up a low from 26 percent different 22 to are there cost. Of course, beverage make cocktails—just to wine, spirits, and beer, for percentages interesting! the job more Cost Control Labor other serviceLike in industries, labor is the highest cost about 24 to from Labor costs range a restaurant. operating sales. One of the challenges of restaurant of total 30 percent each for staff of amount right the scheduling is operations more of guests and sales increases, shift. As the number so should the number sales drop, needed but, when staff are of staff. sales $141,400. Given making the total $95,400 and $46,000, by using the formula of labor costs a labor cost of $35,350, over sales we have: Category t s co

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= r o 0

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o o f f T o Co is calculated in the in the is calculated cost percentage beverage

t al t s Total Food Sales Food Total Sales Beverage Total Sold Cost of Food Sold Cost of Beverage Labor Costs o T Co So, for every beverage dollar earned, the cost was 19 dollar earned, the cost So, for every beverage A food cost of 24 percent shows us that $0.24 of each of each shows us that $0.24 A food cost of 24 percent The The food cost percentage is (remember the simple formula, the simple formula, is (remember The food cost percentage percent. Restaurants vary in their beverage cost percentage cost percentage vary in their beverage Restaurants ­percent. $1.00 of food sales is spent on the cost of food prepared. of food prepared. $1.00 of food sales is spent on the cost and the cost of ingredients calculate Most chain restaurants to a menu item so that they expect recipes use standardized your in progress As you have a $0.24 food cost percentage. have a higher or that some menu items you will realize career, company and that the restaurant lower food cost percentage 24 percent example, For it expects. must decide what results and means that guests may low for some restaurants is too about average generally Restaurants high. too the prices find run houses steak high-end cost; however, food percent 28 up for that with a lower food cost—they make a 34 percent labor cost in the kitchen. same way as the food cost: cost of beverages sold divided sold divided same way as the food cost: cost of beverages the food cost sales for a period. Like beverage by the total when for cost control as a tool it is best utilized percentage, for the same period. percentage the budgeted to compared should amount budgeted the from variances significant Any cost in the casual restaurant The beverage be investigated. above is: Managing restaurants is a complex operation. There are many are There operation. is a complex restaurants Managing suc- be is to operation be in line if the need to variables that tabs on the operation’s keep way that managers cessful. One and labor performance the food, beverage, is by checking carefully be to need other, any than more costs, These costs. a hourly, basis. Calculating on a daily, sometimes monitored of taking the temperature like or labor cost is food, beverage, a regular doing on out how we are can find We the operation. as the cost of is calculated basis. The food cost percentage a as such period, specific a for sales food by divided sold food is com- The result date. or a year to week, 14 days, a month, is An example for the period. percentage the budgeted to pared of a casual restaurant: Food and Beverage Cost Cost and Beverage Food Percentages cost over sales times 100): M07_WALK4919_04_SE_C07.indd 143 M07_WALK4919_04_SE_C07.indd 144 144

CHAPTER 7 Restaurant Operations esting to seeif,when,andhowthishappens. restaurant employeesinaprevious section,anditwillbeinter of theshift. returnchecks andinsistthattheservers allchecksattheend that goeson).Restaurants alsorequire sequentiallynumbered (people whositinabarorrestaurant andwatcheverything the register. Inorder to avoid this, restaurants use spotters instead ofputtingthemoneyandacompleted order ticket in tearsthe check,server uptheorder andpockets thecash the shift,employeepockets $80.Or, whentheguestpays We havediscussedthemovefora$15perhourwageall big difference! canmake same message:smallchangesandefforts a way to Almosteverywhere onegoes,wehearthe start. picking oneto lookinto, oracton,perweekisagood idea to inspire youeachdayofthenext month;even below comefrom chefsacross the country. There’s an ideas Congress—“The ResponsibilityofaChef”—the the spiritofthemethisyear’s International Chefs about people,attitudes,communities,andlifestyles.In Sustainability isnotjustaphilosophyaboutfood—it’s 3. 4. 6. 5. 2. 1. around theworld. incredible, top-rated biodynamicororganic winesfrom organic,Support biodynamicviniculture. paper. BioPac packagingisoneoption. take-out containerswithmadeofrecycled with reusable plasticones,andreplace Styrofoam Ditch theStyrofoam. kling water! offer anumberofoptions—includingin-housespar water bottledoutofhouse.In-housefiltration systems world (like TheFrench) are Laundry movingawayfrom And someofthebiggestnamesinrestaurant footprint through anumberofinnovativemeasures. panies are workingto reduce andoffsettheircarbon Not allbottledwater iscreated equal. it. serving when it wascaught,youprobably don’twantto be they can’ttell youwhere afishisfrom, andhow areand demandthatyourpurveyors informedtoo. If Monterey BayAquarium’s SeafoodWatch Guide , ture. Informyourselfusingresources like California’s sustainability ofseafooddifferfrom thoseforagricul- Know yourseafood. extra produce foraspecialfamilymeal.) story andapersonbehindit.(Andyoucanbringback practice forremembering thateachpieceoffoodhasa Take yourteam to visitafarmer. yourlocalfarmers. But whenitispossible,support Go local. Sustainable Restaurant Operations Restaurant Sustainable It’s allthetime. notpossibleforeveryone The criteria forevaluating the Replace cooks’drinkingcups This isgood Some com- There are - - 15. 14. 13. 12. 11. 10. 3. 2. 1. 9. 8. 7. sales is$105,006,calculate thefoodcost­ If thecostoffoodsoldis$34,789andtotal food health oftherestaurant? previous questions,howwouldyouevaluate the Given thefoodandbeverage percentages from the percentage? beverage salesis$51,231,whatthebeverage cost If thecostofbeverages soldis$9,723andthetotal companies, willwalkyouthrough theprocess—from ­water. Look into solarthermalpanelsto heatyour to offsetthehighercostofwindpower. down byimplementingotherenergy-saving techniques than regular energy, there’s anincentiveto bringthebill power option.Thoughittends to cost10percent more about options—ConEd,forexample, offersawind- Consider windpower. ronmental andeconomicadvantage. CFLs alsolast10timeslonger, givingthemtheenvi- 75 ­ Compact fluorescent light(CFL)bulbsuse fridge workharder to staycool. clean andtight,warmaircanseepin,makingthe Check thesealsonyourwalk-in. significant energy billdollarsoverthecourseofayear. on, thejuicekeeps flowing—shuttingitdowncansave you leaveatnight. Shut downthecomputer andPOSsystems when (that alsosaveyoumoneyinthelongrun). and developgreener, cleaner, energy-smart machines Brands, are developingspecialinitiativesto investigate Major equipmentproducers, like andUnified Hobart The kitchenequipmentofthefuture isgreen! community garden. tricks, orspendafewhoursworkinginthesunat schoolafew the kitchenstaffoflocalelementary soup kitchen,bringlocalkidsinto thekitchen,teach per monthto communityservice. Devote oronemorning onemorningperquarter from drinkbottlesandrecycled tires. recycled PETpostconsumerrecycled fiberreclaimed sible. Even yourkitchen andbarmatscanberespon- ­popularity andavailability. organic spirits,beers, andmixers are growing in organicSupport barproducts. CheckYour Knowledge percent lessenergy thanincandescentbulbs. Waterhog’s EcoLineismadefrom 100percent Solar Services, oneof the oldestandbiggest Solar Services, 7 When thecomputer system is Ask yourenergy provider All-natural and If they’re notkept Send staffto a percentage. ­

06/11/17 3:13 PM Cost Control 145 06/11/17 3:13 PM - - servers They need They need From agricultural philosophy to the to philosophy agricultural From Cleaning supplies, paper products, and so on and paper products, Cleaning supplies, system to ensure availability of items. ensure to ” system (or forming) a local co-op for purchasing green green for purchasing co-op a local (or forming) items. bulk. all cheaper in are yourself!Educate - of re the number operations, restaurant specifics of is ever-growing. and practices issues for green sources by Michael Pollan, Dilemma Pick up The Omnivore’s Dining Green: Association’s Restaurant the Green Sustainable Environmentally Creating A Guide to and Kitchens, and Seafood Handbook: Restaurants Buying and Sourcing, to Guide The Comprehensive of Seafood Business. by the Editors Preparation your staff!educate Last but not least, so that doing, doing what you are know why you’re to and beyond! the diners, the word—to they can spread Finally, let us look at how one operating partner manages how one operating Finally, let us look at having his various by his restaurant Matt organizes done all day Decision making and communicating are watched by Labor costs are is an on-going item. Control 29. 30. - seafood restau Matt Andrus manages a great his restaurant. Florida. Matt Bar in Bradenton, The Anna Maria Oyster rant, his restaurant make the elements of management to utilizes planning where successful. Planning for Matt includes financial Monday is his planning the financial goals daily. he monitors each of his opening, to delegate day; he decides what to guest counts are middle, and closing managers. Sales and and sales figures year’s on last and previous based projected percent. three within two to to accurate generally are cover all important aspects of ­managers use check lists to the kitchen, one man- in example, For running the restaurant. and ordering, for cleanliness, another for ager is responsible of the house, one In the front for hiring and training. a third on ­ one beverages, bar and the on focuses manager He and another on paperwork,and bussers, I-9’s. including past per review to holds a biweekly meeting of all managers discuss line and to the bottom line to top formance from are this meeting, any under-performers business. At future up” all not “ringing people who are (these are discussed or some other thing their sales nor suggestively selling items, Matt with policies and procedures). not done in accordance uses a “par and lets Matt gives his managers the tools and every day. Results areas. result key the of care take and decide them daily and monitored and labor costs are of food, beverage, the situation, rectify to sales and action is taken to compared monthly, unless taken Matt has inventory when necessary. is in which case, inventory problem; is a suspected there as needed. taken and bever one of the highest costs. Food the hour as they are Matt example, For daily. also closely monitored age costs are be 18% of liquor sales; costs to the liquor-pouring expects beer 15% be 25 % of bottled beer sales; draft bottled beer to beer sales; and wine 35% of wine sales. Maintenance of draft also controlled. each day and its costs are is checked - See Request that pur Trade astringent, astringent, Trade - increas The options are Biofuel companies across the the Biofuel companies across - it! Don’t automati Don’t waste - and napkins re Tablecloths Instead, use products made of products use Instead, Even high-volume establishments Even There are a number of water- are There - or inte garden Consider a roof-top - Be strict about kitchen and bar staff recy paperwork to tax credits. With a saved on the money tax credits. paperwork to for itself in two will have paid the system heater, water years. three to routine. your cleaning Green nonbiodegradable, potentially carcinogenic chemical carcinogenic potentially nonbiodegradable, eco-safe products. for biodegradable, kitchen cleaners pest control. Use nontoxic of the major companies have ing, and even some options. green built furniture. locally Consider purchasing if there are any artisans in your state working with working any artisans in your state are if there naturally that have fallen trees wood (from reclaimed or age). because of storms Recycle your fryer oil. country up and convert will pick it it. your own. Grow for small plants and herbs. boxes window rior/exterior solution. one low-maintenance are EarthBoxes Cut down on shipping materials. veyors send goods with the least amount of packing veyors send goods with the least amount packaging possible. Request that Styrofoam materials not be used. - c-folds, and rest paper, toilet in white Trade paper towels. room paper. unbleached, recycled chlorine-free Need new toilets? half a gallon to from saving options that save anywhere brick than a gallon per flush. The old-fashioned more place a brick in the tank is a good start too: technique saved up is water space that it takes of your toilet—the is flushed. each time the toilet Compost garbage. cans for all separate this happen. Keep can make and dump it in a compost bin out food-based waste, is back. A common misconception about compost that it smells bad—this is not true! Recycle! cling glass and plastic receptacles. Recycle cardboard Recycle cardboard cling glass and plastic receptacles. and any newspa- used for produce, and wood boxes the restaurant. pers or magazines sent to Cut down on linens. amount of chemical cleaners, bleaches, a large quire if possible. If it’s white, away from Stay and starches. - consider eliminating tablecloths all to not imperative, of starched. Go for soft cloth napkins instead gether. + energy. Ice = water and ice bins—wait until they truly get low, cally refill the get through only add as much as you need to of both in terms produce, to crush. Ice is expensive money and resources. or café, without a small restaurant If you’re joining into space, look huge needs or storage 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. M07_WALK4919_04_SE_C07.indd 145 M07_WALK4919_04_SE_C07.indd 146 146

CHAPTER 7 Restaurant Operations tion, iftheydonotbeginproduction forthe staff are beginningto “86”agreat dealofproduct. Inaddi- and produce. The guestsare gettingfrustrated becausethe including absolute necessitiessuchassteaks, chicken, fish, the restaurant willbeindeeptrouble. OnFriday nights, cannot delivertheproduct until10:00 a phonecallat10:30from J&Ggroceries, statingthatit end becausesheisprojecting itto bebusy. Sallyreceives exceptional amountoffoodfortheupcomingholidayweek- uled to bedelivered at10:00.Sallyspecificallyordered an It’s 9:30onaFriday morningatThePub. Product issched- Shortage inStock Saturday morning. gizes; however, itisimpossibleto madeuntil havedelivery she receives theproduct assoonpossible.Heapolo- morning. Sheexplains to thedriverthatitiscrucial graduates sometimesasgrade Acandidates orthorough- to hire experienced youngtalent.Recruiters refer to these increase, reflecting therestaurant industry’s willingness for jobs.Inthelastfewyears,salarieshavestarted to location oftheestablishmentalsoaffectsalaries. to sellyourself.Thetype ofoperation, salesvolume,and in therestaurant duringcollegeand yourability industry that continuumdependsontheskillsyou­ on thelocationinUnited States). Where youwillbeon positions (thismaybeslightlylowerorhigher­ from $32,000to over$40,000for assistantmanagement range from fast-foodto five-stardining.Salariesrange foradvancement.­ the bestopportunities and salariesinthehospitalityindustry, highest starting that offerscollegegraduates the enormousopportunity, means thatyouhavejustselected thearea ofhospitality Choosing amanagementcareer inrestaurant operations Restaurant Operations By 1:00 Higher salariesmeanamore competitiveenvironment Career Information p . m FIGURE 7–4Career Pattern inthe Restaurant Industry. ., ThePub isbeginningto runoutofproduct, President Busser a President . Server m Food Vice . onSaturday Opportunities acquired while p . m depending . shiftsoon, Manager Regional Leader Shift restaurants thatgenerate $5millionplusinsales. restaurant general managers to make six-figure incomesfrom Itisnotuncommonfor people basedstrictlyonperformance. fully completed shift. Restaurant operations typicallypay or sharinginthepleasure ofarestaurant crew’s success- Few thingsare more gratifying thanagenuinelysatisfiedguest toless opportunities delightguestsandmotivate ­ As a manager, you will work in an atmosphere that offers end- under pressure inafast-pacedenvironment. that requires beingconstantlyonyourfeetandworking ­weekends andholidays.Itisaphysicallydemandingjob rant managerswork50to 60hoursaweek,including through yourfirstyearasamanager. Typically, restau- complete themanagement training programs andto get in restaurant management(seeFigure 7-4). skills andhaveaworkrecord thatshowsagenuineinterest breds. Recruiters wantgraduates whoare confidentintheir 5. 4. 3. 2. 1. DISCUSSION QUESTIONS guests andagreat amount ofprofits. the problem isnot immediately alleviated, itwilllosemany The Pub doesinexcess of$12,000insales.However, if However, thiskindofchallengehastremendous rewards. Possessing to confidenceandskillisnecessary this? Ifso,whatwoulditbe? toIs itimportant haveabackupplanforsituationlike hand? What canyoudoto alwayshaveenoughproduct on problem? Who shouldyoucallfirst,ifanyone,to alleviate the soon aspossible? How wouldyouproduce theappropriate product as the problem? What immediate measures wouldyoutake to resolve Management Manager General Trainee Assistant Manager Manager

employees. employees. 06/11/17 3:13 PM STUDY CASE Trends in Restaurant Operations

• More flavorful food. • Social media for restaurants offer both the restaurant • Increased take-out meals, especially at lunch, and more and customers the ability to seek out and provide home meal replacement (for dinner). feedback on the dining experience. Social media offer • Increased food safety and sanitation. an array of tools for increased marketing and aware- ness, operations management, and customer selec- • Increasingly sophisticated guests need more exciting tion of the dining experience. offerings. • Twin and multi-restaurant locations. • More food court restaurants in malls, movie theater complexes, airports, gas stations, and colleges and • Quick-service restaurants (QSRs) in convenience universities where guests line up (similar to a cafeteria), stores. select their food (which a server places on a tray), and • Food trucks and pop-ups are appearing in most major pay a cashier. cities, as well as many cultural towns and suburban • Loyalty programs, group discounts, gift cards, and cou- centers. The options of menu items and cuisine styles pons. People are dining out now as much as ever, and are rapidly increasing, thereby providing customers the typical customer is all about a good dining experi- with a multitude of offerings. ence at a discounted price. • Increase in casual dining, especially fast casual.

Summary

1. The National Restaurant Association has identified the 3. The back of the house is generally run by the kitchen following functional areas of a foodservice manager’s manager and refers to all the areas with which guests job: human resource management, financial manage- do not normally come in contact (purchasing, receiving, ment, administrative management, and operations storing/issuing, food production, stewarding, ­budgeting, management. ­accounting, and control). Some of the main consid- 2. The front of the house includes anyone with guest con- erations in efficiently operating the back of the house tact, from those in charge of maintaining curbside appeal include staffing, scheduling, training, food cost analysis to the bus person. The general manager or restaurant (internal controls), production, management involvement, manager runs the restaurant. There may be more manag- management follow-up, and employee recognition. ers with special managers who are cross-trained in order 4. One way that managers keep tabs on the operation’s to relieve each other. The host greets guests and rotates performance is by checking the food, beverage, and labor arriving guests among the sections. Servers take and costs. These costs, more than any other, need to be care- present orders, offer high-quality service, and use sugges- fully monitored on a daily, sometimes hourly, basis. The tive selling to increase food and beverage sales. Bussers food cost percentage is calculated as the cost of food clear tables. sold divided by food sales for a ­specific ­period. The result Restaurants formulate a budget projecting sales and is compared to the budgeted ­percentage of the period. costs for a year on a weekly and monthly basis. Such Beverage cost percentage is calculated the same way. forecasting involves estimating the number of guests and Labor is the highest cost in operating a restaurant. average guest check. Average guest check is calculated Cost is calculated by dividing the total labor cost by the by dividing the total sales by number of guests. The num- total sum of food and beverage sales. ber of guests forecast for each day is multiplied by the amount of the average food and beverage check for each Key Words and Concepts meal to calculate the total forecast sales. Each day, ­actual totals are compared with the forecasts. Forecasting is also American service used to predict staffing levels and labor costs. Average guest check Cloud-based point of sale and reservation systems Back of the house help keep front of the house operational. Fast-casual res- Beverage cost percentage

taurants use order-ahead apps to offer convenience. 86'ed Summary A $15 per hour proposed minimum wage is controver- First in–first out (FIFO) sial. Restaurants have developed solutions for rising labor Food cost percentage costs. French service

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CHAPTER 7 Restaurant Operations Internet Exercises Review Questions Suggestive selling Standardized recipe Spotters Smiling peoplegreeter (SPG) Russian service Restaurant forecasting Receiving Purchase order Production control sheets Product specification Par stock Order specification NCO (neat,cleanandorganized) Guest countsorcovers Gueridon Front ofthehouse 2. 1. 4. 3. 2. 1. ­burgers, fajitas,margaritas, andchili.Establishedin1975 Chili’sSummary: isafunandexciting place to have Organization: Chili’s GrillandBar success to nonprofit members. the benefitsofassociationandgivesguidancefor chises. TheNRAhelpsinternational restaurants receive operators, andquick-service service chains, andfran- 170,000 restaurants. Memberrestaurants represent table food industry. Itconsistsof400,000membersandover TheNRAisthebusinessassociationof Summary: Organization: NationalRestaurant Association(NRA) why not? Does thislaborcostpercentage seemreasonable? Whyor cost percentage. $164,009 andthelaborcostsare $42,125,findthelabor If thetotal foodandbeverage salesforarestaurant are back ofthehouserefer to? Who runsthebackofhouseandwhatareas does What isconsidered the front ofthehouse? List key aspectsofarestaurant manager’s job. Imagine therestaurant in#4isafinediningrestaurant. www.restaurant.org c. rant andhospitalityindustry? b. NRA saysabouthowto prevent it. NRA site. Readabout eachdiseaseandwhatthe a. Check thetop stories attheNRA’S Website; What kindsofcareers are availableintherestau- List thefood-bornediseasespresented onthe Apply Your Knowledge 5. Endnotes Suggested Activities 3. 2. 1. 2. 1. 7. 6. 4. 1. 3. 2. the United States and20othercountries. in Dallas,thechainnowhasmore than637restaurants in Please seetheStar ChefsWebsite formore information. Personal conversationwithJoeRiley,July12,2006. Ibid. from Conceptto Operation, p.275. This sectiondraws onJohnR.Walker, TheRestaurant Personal conversationwithDannyMeyer, 14,2006. January information. Please seetheMooCluckWebsite formore andSons,2009),pp.86–87. Wiley from Concept to Operation, 5thed.(NewYork: John This sectiondraws onJohnR.Walker, TheRestaurant would thatbeindollars? $685,324. Ifa25percent laborcostisexpected, what Sales atyourrestaurant forthemonthofOctober are for $16.95,whatisitscostsupposedto be? If a33percent foodcostisrequired andamenuitem sells Total: $12,500 Beverage sales:$2,500 Food sales:$10,000 ­September 15are asfollows: In acasualItalianrestaurant, salesfortheweekof percentage forthenext week. and decidewhatyouwoulddoto improve thelabor cost In groups, lookattheexample ofresults inthechapter in thetext. his orherdutiesandresponsibilities compare withthose In groups, interview arestaurant managerandcheckhow b. your ownbusinessdifferent from havingafranchise? yourownbusiness,howissettingup involved instarting franchise? From whatyouhavelearnedabouttheissues a. other costsandprofit? does thatrepresent andhowmuchisleftoverfor c. sales, howmuchdidthebeverages cost? b. food actuallycost? a. What isthe“Chiliheadculture”? What requirements mustyoumeetto openaChili’s If thelaborcostis28percent, howmuchmoney If thebeverage costis25percent ofbeverage If thefoodcostis30percent, howmuchdidthe

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