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© Goodheart-Willcox Co., Inc.
ObjectiveObjective
• Recognize various types of foodservice establishments that employ chefs and cooks
© Goodheart-Willcox Co., Inc.
Types of Foodservice Types of Foodservice EstablishmentsEstablishments
• Cooks and chefs work in– restaurants– hotels– clubs– catering operations– institutional
foodservice
© Goodheart-Willcox Co., Inc.
RestaurantsRestaurants
• Categories of restaurants– Full-service restaurants: span a range of styles from
fine dining to casual– Quick-service restaurants: customers typically place
orders at counter; offer speed, convenience, and reasonable prices; often called fast-food restaurants
What are some examples of full-service and quick-service restaurants in your area?
© Goodheart-Willcox Co., Inc.
HotelsHotels
• Hotel dining options range from vending machines to numerous on-site restaurants of varying styles and cuisines
© Goodheart-Willcox Co., Inc.
HotelsHotels
• Hotel restaurants provide service to registered guests as well as the community
• Many hotels operate room service and banquet facilities
© Goodheart-Willcox Co., Inc.
Clubs Clubs
• Many private clubs provide their members with clubhouses with restaurant and banquet facilities
• Members expect fine cuisine and excellent service
• Members of city clubs use the club’s dining rooms for business and entertaining purposes
© Goodheart-Willcox Co., Inc.
CateringCatering
• Catered events are often held in a hall or banquet facility
• Off-premise catering involves catering locations that do not normally serve food
© Goodheart-Willcox Co., Inc.
Institutional FoodserviceInstitutional Foodservice
• Institutional foodservice, also known as noncommercial foodservice, allows employees and business clients a place to eat without leaving the premises
• Many institutional foodservice operations are run by very large foodservice companies
© Goodheart-Willcox Co., Inc.
ObjectiveObjective
• Compare the different forms of business ownership
© Goodheart-Willcox Co., Inc.
Legal Forms of Business Legal Forms of Business Ownership Ownership
• The three main legal categories of ownership are– sole proprietorship– partnership– corporation
© Goodheart-Willcox Co., Inc.
Sole ProprietorshipSole Proprietorship
• The owner of a sole proprietorship is personally responsible for all debts of the business
• Sole proprietors have final authority on all decisions
© Goodheart-Willcox Co., Inc.
PartnershipPartnership
• A partnership agreement spells out the responsibilities of each partner and how profits and losses will be divided
• Each owner is personally responsible for all the debts of the business in a partnership
• Legally, the partnership is ended when one or more partners dies or leaves the business
© Goodheart-Willcox Co., Inc.
CorporationCorporation
• Ownership of a corporation is divided among investors in parts called shares
• The corporation has most of the rights and responsibilities of a real person, including responsibility for its debts
• In general, corporations pay more taxes than other forms of ownership
© Goodheart-Willcox Co., Inc.
ObjectiveObjective
• Explain the different ways foodservice businesses are organized
© Goodheart-Willcox Co., Inc.
Organization of Foodservice Organization of Foodservice BusinessesBusinesses
• Foodservice businesses can be organized as– independent restaurants– chains– franchises
© Goodheart-Willcox Co., Inc.
Independent RestaurantsIndependent Restaurants
• An independent restaurant is a restaurant that is not a part of a group
• Each is a unique operation with different ownership
What are some advantages and disadvantages for independent restaurants?
© Goodheart-Willcox Co., Inc.
ChainsChains
• Chain restaurants are often referred to as “multi-unit foodservice operations”
• A chain uses the same menu, décor, and management practices in each location
What are some advantages and disadvantages for chain restaurants?
© Goodheart-Willcox Co., Inc.
FranchisesFranchises
• The owner of a franchise restaurant pays for the right to operate a franchise and is called a franchisee
• The franchisee – pays a fee for the right to use the brand
name, concept, logo, and advertising– is required to use the franchise company’s
products and operate by its standards
© Goodheart-Willcox Co., Inc.
ObjectiveObjective
• Summarize the risks and rewards of entrepreneurship
© Goodheart-Willcox Co., Inc.
EntrepreneurshipEntrepreneurship
• Many entrepreneurs are attracted to foodservice businesses
© Goodheart-Willcox Co., Inc.
EntrepreneurshipEntrepreneurship
• Successful chef-entrepreneurs must have– great culinary skills– business management expertise– the ability to see the larger business
environment and new opportunities
© Goodheart-Willcox Co., Inc.
Risks and RewardsRisks and Rewards
• Risks of entrepreneurship– Repayment of debts if
the business fails– Restaurants have high
failure rates
• Rewards of entrepreneurship– Being your own boss– Financial gain– Personal and
professional pride
© Goodheart-Willcox Co., Inc.
ReviewReview
• Name the types of foodservice establishments that employ chefs and cooks
– Restaurants, hotels, clubs, catering, institutional foodservice
© Goodheart-Willcox Co., Inc.
ReviewReview
• Describe the difference between full-service and quick-service restaurants
– Full-service: servers take the customer’s order and bring the meal to their table; can be casual or fine-dining
– Quick-service: customers typically place orders at a counter; offer speed, convenience, and reasonable prices
© Goodheart-Willcox Co., Inc.
ReviewReview
• What is institutional foodservice?– Institutional foodservice supplies meals for
businesses and organizations that want to provide foodservice for employees and clients
© Goodheart-Willcox Co., Inc.
ReviewReview
• Name and describe the three forms of business ownership– Sole proprietorship: one owner; responsible for
all debts of the business; makes all decisions– Partnership: ownership shared by two or more
people; each owner is responsible for all debts of the business; share business responsibilities
– Corporation: a separate entity with legal rights; ownership is divided among investors; the corporation is responsible for its debts
© Goodheart-Willcox Co., Inc.
ReviewReview
• Explain how independent restaurants, chains, and franchises differ
– An independent restaurant is not part of a group; a chain is a group of restaurants owned by the same company; franchise restaurants are independently owned restaurants that are part of a larger restaurant chain
© Goodheart-Willcox Co., Inc.
ReviewReview
• What attracts entrepreneurs to foodservice businesses?
– Most restaurants are small, independent operations; small businesses have lower start-up costs; small businesses are easier to manage