Restaurant Management and Operations

Probably the biggest reason thousands of people seek restaurant ownership is the possible financial rewards. With relatively few financial assets, it is possible to buy or lease a restaurant or to purchase a franchise. Names like Ray Kroc of McDonald’s, Colonel Sanders of KFC chicken, and Dave Thomas of Wendy’s exemplify the potential success one can experience in the restaurant business. Dozens of McDonald’s franchise holders are multimillionaires, yet some McDonald’s restaurants fail. Some owners and franchisees of KFC stores are also wealthy. A surprise billionaire is Tom Monaghan, the Domino’s Pizza entrepreneur. Hundreds of lesser-known people are also making it big, some by  building or buying restaurants, others by becoming franchisees.

Declining consumer confidence took a bite out of restaurants’ sales and profits in 2008, leading to bankruptcy filings at casual dining chains like Bennigan’s and the closure of more than 600 Starbucks locations.

With the economy in trouble, all segments of the restaurant industry are feeling it. Consider all the effects of a failing economy. While prices of food and energy costs (heating, lighting, kitchen equipment, etc.) go up, sales slow down.

Restaurants as Roads to Riches

Here are some of the things this book will help you with:

■ Ownership: Sole proprietorship, partnership, company, or franchise.
■ Development of a business plan: A good business plan may take a while to develop, but you’re not going to obtain financing without one.
■ Marketing/Sales: You need to know who your guests will be and how many there are of them.
■ Location: Will your location be freestanding, in a mall or a city center, suburban, or something else?
■ Who is on your team?: Your chef and staff, lawyer, accountant, insurance, sales, marketing, and public relations.
■ Design/Ambience: What design/ambience will you select?
■ Menu: What will your menu feature? How many appetizers, entr´ ees, and desserts will you offer?
■ Beverages: Who will develop your beverage menu, and what will be on it?
■ Legal: What permits do you need?
■ Budgets: What will your budget look like?
■ Control: What kind of control system will you have, and how will it work?
■ Service: What style of service will you select and how will it operate?
■ Management: How will your restaurant operate?
■ Operations: An overview of restaurant operations.