CHAPTER THREE: Concept, Location, and Design

• Benefits of a Good Restaurant Name• The Relationship Between Concept and Market• Reasons Restaurant Concept Might Fail• Qualities of Successful Restaurants• Location Factors to Consider• Factors in Developing a Concept• Knockout Criteria

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WHAT IS A CONCEPT?

The matrix of ideas that constitutes what will be

perceived as the restaurant’s image

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CONCEPTS…• Provide the framework on

which to hang the image• Apply to any foodservice

operation• Should fit a definite target

market• Distinguish the establishment

as D&B, different and better, than the competition

• May be necessary to modify as competition arises

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CONCEPTS INCLUDE…• Public relations• Advertising• Promotions• Building• Curbside appeal• Décor• Menu• Staff• Music• Style of operation

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SYMBOLS• Aspects of the concept• Seen in the:

– Sign– Logo– Colors– Upholstery– Food– Food presentation

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CONCEPT EXAMPLES

TACO BELL The word “Taco” is synonymous with Mexican food

THE SPAGHETTI FACTORYSuggests quick service, low costs, and a fun place for Italian food

THE SEVEN GRAINS Suggests a healthy-food restaurant

LONG JOHN SILVER’SSuggests seafood

GRANDMA’S KITCHENSuggests a homey, friendly place

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DEFINING THE CONCEPT AND

MARKET• Concept should fit the market– Coffee shop with counter service would appeal

to interstate travelers• Restaurant cannot exist without a market• Must be a market gap, or need for the idea

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THE MARKET/RESTAURANT

RELATIONSHIP The concept and market comprise the hub around which the restaurant develops

The concept and the market are central to the restaurant, supported by the menu, prices, service, quality, location, atmosphere, food, and management

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SEQUENCE OF RESTAURANT

DEVELOPMENT: from concept to opening

1. Business marketing initiated2. Layout and equipment planned3. Menu determined4. First architectural sketches made5. Licensing and approvals sought6. Financing arranged7. Working blueprints developed

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SEQUENCE OF RESTAURNT

DEVELOPMENT CONT’D 8. Contracts let for bidding9. Contractor selected10.Construction or remodeling begun11.Furnishing and equipment ordered12.Key personnel hired13.Hourly employees selected and

trained14.Restaurant opened

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PLANNING SERVICESMany aspects of restaurant design are carried out by otherparties, hired by the owners and management. The

designer,for example, performs the following services:

• Basic floor plan• Equipment schedule• Electrical requirements• Plumbing requirements• Equipment• Equipment elevations• Refrigeration requirements• Exhaust and in-take requirements

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COMMON DENOMINATORS

Some factors may be common to allkinds of restaurants:

• Human needs met by the restaurant• Menu prices• Degree of service offered• Space provided for each customer• Rate of seat turnover• Advertising and promotions

expenditures• Productivity per employee• Labor cost• Food cost

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CUSTOMER SPACE / TURNOVER RATE

Type of Service Dining Room (sq.ft/ seat)

Turnover in Patrons (seat/hr)

Fast Casual 10-12 1.75-3.0

Dinner house 15 – 17 1.25-1.75

Deluxe Restaurants

13 – 18 0.5 – 1.25

Casual restaurants

11 – 15 1 – 2.5

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PLANNING DECISIONS THAT RELATE TO CONCEPT

DEVELOPMENT• Who are the target customers?• Buy / Build / Lease / Franchise?• Food preparation from scratch or

from convenience items?• A limited menu or an extended

menu?• Service: limited or full?

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PLANNING DECISIONS (CONT’D)

• Young part-time or older career employees?

• Paid advertising or word-of-mouth advertising?

• Grand opening or soft opening?

• Electricity or gas?

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ELEMENTS OF THE MISSION

STATEMENT• Purpose of enterprise• It’s business strategy• Behavior standards it will

follow• Values that the

management and employees will hold foremost

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MISSION STATEMENTChili’s Grill and Bar

We aim to be a premier growth company with a balanced approach toward people, quality and profits: to cultivate customer loyalty by listening to, caring about, and providing customers with a quality dining experience; to enhance a high level of ethics, excellence, innovation and integrity; to attract, develop, and retain a superior team; to be focused, sensitive and responsive to our employees and their environment: and to enhance long-term shareholder wealth

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LOCATION CRITERIA• Demographics of the area• Visibility from a major highway• Accessibility from a major highway• Number of potential customers passing by the restaurant• Distance from the potential market• Desirability of surroundings• Market population• Family income• Growth or decline of area• Competition from comparable restaurants

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KNOCKOUT CRITERIA• Proper zoning• Drainage, sewer, utilities• Minimal size• Short lease• Excessive traffic speed• Access from a highway

or street• Visibility from both sides

of street

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DESIGN CRITERIA• Design needs to correlate

with the theme• Space allocation - front of

the house and backstage• Lighting (single most

important element)• Color (in tandem with

lighting)• Layout of the dining area

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The End