MINISTRY OF EDUCATION AND SCIENCE OF UKRAINE SIMON KUZNETS KHARKIV NATIONAL UNIVERSITY OF ECONOMICS Olena Akhmedova Olena Sushchenko ORGANISATION OF THE RESTAURANT INDUSTRY TEXTBOOK Kharkiv S. Kuznets KhNUE 2019 1 UDC 338.488.2:640.43(07034) О-72 Authors: PhD in Public Administration, Associate Professor O. Akhmedova; Doctor of Science in Economics, Professor O. Sushchenko. Рецензенти: завідувач кафедри туризму Кременчуцького національного університету ім. М. Остроградського, д-р екон. наук, проф. І.М. Труніна; завідувач кафедри менеджменту та туристичного бізнесу Дніпровського національного університету ім. О. Гончара, д-р екон. наук, проф., Н.П. Мешко. Рекомендовано до видання рішенням вченої ради Харківського національного економічного університету імені Семена Кузнеця. Протокол № 6 від 07.12.2018 р. Самостійне електронне текстове мережеве видання Organisation of the Restaurant Industry : [Electronic resource] О-72 textbook / O. Akhmedova, O. Sushchenko. – Kharkiv : S. Kuznets KhNUE, 2019. – 185 p. (English) The theoretical framework of the restaurant industry organization in the world and Ukraine are presented. The main trends in the restaurant industry development have been elicited. The concept of hospitality, the approaches, objectives and tools have been considered. Particular attention has been paid to the peculiarities of interconnection of the tourism organisations and restaurant establishments, interdependence of the type of tour and kind of catering, safety and quality issues in the restaurant industry. For Bachelor's (first) degree students of speciality 242 "Tourism". UDC338.488.2:640.43(07034) О-72 © O. Akhmedova, 2019 O. Sushchenko © Simon Kuznets Kharkiv National University of Economics, 2019 2 Introduction Restaurant industry, being a part of the hospitality system, is presented in all areas, including people’s homes, public places and international relations as an integral element of the global tourism sphere. In any country the restaurant industry contributes greatly to meeting social, cultural, economic and entertainment needs. It operates in commercial fields that provide food and beverage, as well as entertainment services for guests or clients. Studying the restaurant industry promotes critical awareness of the social, cultural, economic and environmental factors that affect the restaurant industry by focusing on restaurant management practices. It fosters creative and entrepreneurial skills, commitment to service and awareness of the global opportunities available in the restaurant industry by developing operational, management and transferrable hospitality skills. The academic discipline “Organisation of the Restaurant Industry” introduces students to restaurant sectors and environments, issues, management practices and skills as they engage in operational and theoretical restaurant industry frameworks. Students are trained to reflect on different events to become familiar with industry practice. Using the inquiry approach, they examine and evaluate issues and explore the possibilities for a sustainable future for the industry. During the course, students acquire the following competences: the ability to understand the essence and the types of the establishments of the restaurant industry and peculiarities of their development; the ability to provide restaurant services and catering to the tourists; the ability to organise the restaurant services; the ability to provide quality and safety of the services in the establishments of the restaurant industry. Each chapter of the textbook has questions for consideration and individual tasks which help to deepen students’ knowledge on the subject. There are also seven case studies which provide practical training on the topics discussed. Students may work individually and in teams developing research, decision making and communication skills that can lead them to professional hospitality careers in food and beverage, catering, accom- modation, entertainment, resorts, tourist attractions, festivals and events, tourism businesses. The academic discipline “Organisation of the Restaurant Industry” is a fundamental academic discipline, obligatory according to the curriculum of Bachelor's (first) degree students of speciality 242 “Tourism”. 3 Unit 1 Organisation of the system of service in restaurant establishments 1. The basic notions and definitions of restaurant services 1.1. A general overview of the hospitality industry and restaurant establishments. 1.2. The main definitions of the restaurant industry. 1.3. The main directions and perspectives of development. 1.4. The role of the academic discipline in the process of training specialists of the tourism sphere. One cannot think well, love well and sleep well if one has not dined well Virginia Woolf 1.1. A general overview of the hospitality industry and restaurant establishments Restaurants play a significant role in our lifestyle, and dining out is a favourite social activity. Everyone needs to eat – so, to enjoy good food and perhaps wine in the company of friends and in pleasant surroundings, is one of life’s pleasures. Eating out has become a way of life for families. Today, more meals than ever are being eaten away from home. Many countries have already absorbed every third meal away from home, which is due to many factors: a significant increase in the number of working women, the growing number of divorces, a significant increase in tourism, increased income. This led to the emergence of new types of catering (fast food restaurants, restaurants offering a variety of cuisines, etc.). At the same time, restaurant activity is one of the riskiest businesses: 50 % of new restaurants fail in the first year of operation, 65 % – over two years, and only one restaurant operates from ten to five years [29]. Sloan D. [28], considering the culinary tastes of the consumers, states that up to 75 percent of the meals eaten away from home are for utilitarian purposes, while the other 25 percent are for pleasure. The distinctions are not clear-cut. Depending on the individual, the quick-service experience may be thrilling or boring. For the child, McDonald’s may be full of excitement and 4 fun. For a sophisticate, McDonald’s can be a drag. The family that visits a Burger King or a Wendy’s may find the experience as exhilarating as depicted in the TV commercials. For them, the utilitarian restaurant is a fun place, perhaps more pleasurable than an ultra expensive French restaurant. As a general rule, however, pleasure dining increases as service, atmosphere, and quality of food increase. Presumably, pleasure also increases as menu price increases. Many factors intrude on such straight-line correlation. Having analysed national and foreign literature resources, one can state that other reasons for visiting restaurants are as follows: restaurants can exploit economies of scale to provide a level of variety and specialization that is difficult for the home cook to replicate; for someone who does enjoy cooking, eating out can be a source of ideas and inspiration for new ingredients, techniques, and presentations to try at home; some foods that are fairly inexpensive to buy from a restaurant are expensive or infeasible to produce at home – for example, one might have neither the space nor the budget for a wood-fired pizza oven in the kitchen; for someone who earns their living by sitting in front of a screen pushing bits around all day, preparing and eating food helps to feel anchored back in the physical world; to try something creative that one never would have thought to do; to spend quality time with a loved one; to feel the restaurant’s own unique atmosphere and ambiance; entertaining or socializing. 1.2 The main definitions of the restaurant industry The restaurant industry is the industry of professional restaurants, bars, and other food service providers that allow customers to enter, order food, and eat on the premises [2]. This term can be used in a number of different settings and can refer to just about any type of food establishment, from the most expensive restaurants to fast-food locations. These can be stand-alone restaurants located as part of a shopping mall or as a separate place, or restaurants that can be attached to hotels or resorts. The restaurant industry is usually considered as a part of the hospitality industry and employs a number of different types of employees, from chefs and waiters to cooks and bartenders. Often associated with or used synonymously with the food service 5 industry, the restaurant industry is a professional industry composed of countless locations and employees throughout the world. Almost any location that serves food can be considered as a part of the restaurant industry, though it is typically associated with locations in which a person can sit at a table and eat. For this reason, there is some distinction between the restaurant and food service industries; “food service industry” is often used to indicate any facility that prepares and serves food, without consideration for eating at the location. Food service is a large industry which deals with the preparation and service of food outside the home. Catering a wedding, establishing a restaurant, and running a cafeteria are all forms of this service. Many people take advantage of the range of options provided by this industry all over the world, ranging from stopping at a franchise to pick up a burger and fries to eating a prescription diet while in the hospital [29]. A great deal of goods and services are the part