F&B Exam 1

Name 10 top chain restaurants

-McDonald's -KFC -Burger King -Starbucks -Subway -Pizza Hut -Wendy's -Taco Bell -Domino's Pizza -Dunkin' Donuts

Why is it important to have job descriptions for everyone in your operation?

-a job description is an organizational tool that lists the most important tasks that must be done by someone working in a specific position. Important to have as a documentation for when there is confusion or disagreement on what an employee is responsible for. Also describes tasks to prospective employees when they are searching for a job. Differentiates an employee from another staff member, because it specifies what they need to do, so tasks don't get double crossed.

What is an independent restaurant?

-an operation owned by an owner or owners with one or more properties that have no chain relationship - menus might not be identical among properties, food purchase specifications might differ, operating procedures are varied, etc.

Name at least 10 places where food is available but is not the primary activity

-zoo -concert -church -baseball game -airport -school -amusement park -prison -hospital -gym

Describe and differentiate the 7 elements of the management process

7 elements: Planning- creating goals and objectives Organizing- establishing authority and communication between people Coordinating- assigning roles Staffing- going out and hiring desired people to those roles that you have established already Directing- this means that the manager supervises and provides tasks for staff to follow. Managers direct by giving assistance, proper training, and motivation to employees. Controlling- Sometimes the outcome may not always be what is expected, and so adjustments may need to be made. Controlling is the act of responding to these situations in the most productive and appropriate way possible. Evaluating- sometimes considered the most important step because it overlooks every other step and sees where there could be room for improvement. What are your strengths and what could you do better on? Evaluating assesses whether your goals were achieved.

What is a brand?

A brand is not only the name of a food industry, but also the reputation and stereotypes associated with the company. The brand is the organization's position in the market, and what it wants to be perceived as through customer's eyes. Brands show what guests should expect as well as help them identify with the company.

What is the difference between a marketing plan and a feasibility study?

A feasibility study is used by an operation to see if their plan for starting up a restaurant in a particular area will work. The research and information collected helps guide entrepreneurs when deciding if they should or shouldn't open a restaurant. The marketing plan establishes a business's position in the market and includes the strategies to reach its target markets. The two are related because a feasibility study provides ongoing market research that is used to develop the marketing plan.

What is a contract management company and why would a non-commercial operation hire one?

Contract management organizations are companies that operate the food service organizations for a non-commercial operation. They are hired because there is a growing need for cost containment among non-commercial businesses. Contract management companies... -have greater resources -save money bc of negotiations w suppliers -can operate at lower cost

What types of data do you need for a feasibility study?

Demographic and psychographic information Positive and negative trends that may affect demand Availability, accessibility, convenience Data regarding the surrounding area Information about competitors (location to, type, source/volume of bussiness, hours of op, menu prices, type of service, number of seats, entertainment, promotion efforts, chain affiliation...) Surveying and questionanaires can help determine the needs of potential guests (food preferences, how often dine out, how far are they willing to travel, how much time do they spend on each meal, how much money are they willing to spend..) Results from competition analysis can help with planning the menu and determining revenue and expenses for financial results

What is a flat organization chart? What are the advantages and disadvantages of a flat organization structure?

Every person, regardless of position, would be supervised directly by the owner/manager. Better for small operations. Pros Cons

What is a home replacement meal?

Food purchased at restaurants for at-home consumption. Home replacement meal are generally already prepared, in some cases customers just have to follow simple instructions such as microwaving at home. The main value to consumers that home replacement meals appeal to is convenience.

Who are the primary and secondary groups to whom managers are accountable? Name at least 3 of each

Food service managers interact with people that fall into two different groups: primary and secondary. Primary groups of people include employees, guests, and managers. The secondary group include includes suppliers, the local community, and government regulators.

What are some future trends of the FSI? Name at least 8

Home meal replacements Higher quality items that emphasize value More entertainment in casual dining restaurants co-branding in convenience stores Changes in menu items: Comfort foods Ethnic fusion More healthy food choices Green restaurants Ways that allow technology to improve operations

Describe in detail the steps of a feasibility study for a FSI business

Identify the market. Market area characteristics include demographic and psychographic information of guests in the general area of the proposed site. Demographics include a guest's age, gender, income, martial status, race, ethnicity, etc. Psychographics include the attitudes and aspirations of customers that is more useful for research. This step of a feasibility study is important in positioning the food service operation. Location analysis: The site of the proposed FSI business is one of the most important factors in determining its success or failure. The study researches the number of people in the surrounding area, within walking distance, easy driving distance, etc. It is also important to analyze the location's convenience and availability associated with parking, traffic patterns, distances from exits, as well as the location of other attractions. Availability, convenience and accessibility are all very important factors. Competition analysis: this segment of the study presents an inventory of competing food and beverage facilities in the market area. It analyzes the competitor's location, type of restaurant, source and volume of business, operation hours, menu prices, seating, entertainment, chain affiliation, as well as promotional efforts. Also know the business volume of the competitor. This analysis helps establish and guide marketing strategies for the proposed restaurant. SWOT ANALYSIS Estimate demand: analysis of market area's restaurant and bar sales, provides overview of dining trends and market demand. (surveys) Projected results: Investors need financial information in order to decide to finance the project. The study should clearly explain the estimates for each major revenue and expense category. These include food and beverage revenue, and cost of maintenance, labor, marketing, rent, insurance, etc. Helps guide budget for first year of operation. Ongoing research: ongoing market research is crucial because the results of a feasibility study months before operation may be different once it is time to begin construction. Therefore, it is important to always stay current with research in order to adjust strategies as needed. (property analysis, competition analysis, market analysis) Helps ensure business meets needs and wants of guest, basis for developing the marketing plan. A marketing plan translates this ongoing market research into strategies and tactics - select target market - determine objectives - create action plans - evaluate and revise

What is marketing?

Marketing is a very broad term that, simply put, means seeing the business from the perspective of the guest. Marketing also means determining and actively meeting the needs of consumers. To do this, there are many aspects of marketing that, together, help meet guest's needs. (product, place, promotion, price, people, post-sale, positioning, packaging, partnership, prospects, and programming) ^all of these are important elements of marketing!!!

Why would a non-commercial food service manager need to employ marketing tactics?

Non-commercial food service managers are concerned about marketing to properly meet the needs of their guests that are interested in their food services. Surveys can be conducted to determine menu preferences as well as other types of data. Food services offered by noncommercial organizations need management planning and creativity. Ex. Hospital food service program, pg. 90

What is PR and why is it important?

PR(public relations): the technique or practice of communicating information about the restaurant operation to the public to create a positive impression. PR is important because it creates goodwill and increases the number of guests to your restaurant. Satisfying guests and properly handing their needs contributes to good public relations and overall success of the business. Good relations with both primary and secondary sources can provide word-of-mouth referrals to others. Good relations with community organizations is also important, such as charity work. All of the above are ways to leave a good impression on all whom your restaurant interacts with, thus increasing your success.

Name the 11 P's of the marketing mix? Select 7 to describe in detail and provide F&B examples.

Price- price range off of consumer's willingness to pay. Price often depends on the product. McDonalds vs Proper in Boone. Product- can refer to a tangible item, intangible service, or the restaurant concept. Ctaste example. Promotion- consists of all ways a business trys to persuade consumers to buy its products and services. Place-How information is distributed, this does not always include the place itself. Positioning- the position that the restaurant has in the customers mind. Post-sale- how to get guests to come back after delivering your product. Partnerships- groups getting together for packaging. Partnerships do not always include packaging. Packaging- combining things for one price. Packaging cannot happen without partnerships. Prospect- target markets.. Programming- any activity you do to get from where your restaurant is now to where you want it to be. People- the employees and staff that deliver the products.

What are the pros and cons of each of the following from a management perspective? chain restaurants franchise restaurants independent restaurants

Pros Chain- readily acquire cash, can afford to make mistakes more than independents, afford staff specialists Franchise- company sponsored training programs, more revenue because of extensive advertising, lower food costs do to volume purchasing, specific operating procedures Independent- many restaurants require little capital to get started Cons Chain- government regulations, top management may lose motivation to keep up, less room for managerial flexibility Franchise- Independent- statistics for independent operators say not in business after 5 years. At more of a risk when it comes to making mistakes. Have more liability and responsibility. Don't have as much guidance when it comes to start-up and operation.

What are the pros and cons of each of the following from a customer perspective? chain restaurants franchise restaurants independent restaurants

Pros chain- franchise- independent- Cons chain- franchise- independent-

What types of data do you need for a marketing plan?

Select target markets- Which major markets do you already appeal to? (guest surveys and comment cards) Guest profile research and marketplace factors and trends Determine Objectives- objectives for each market and each meal period. After objectives are established, sales goals and quotas can be set. Create Action Plans- How are we going to reach these goals? Employee involvement. Evaluate and Revise- is the plan working? Evaluation may prevent mistakes and lead to better marketing plans in the future. TOOLS TO ACHIEVE OBJECTIVES: Sales efforts- internal selling and external selling Advertising- outdoor, newspapers, magazines, television, direct mail, electronic advertising (websites/mobile tactics) Public Relations- communicating to the public to make good impression Publicity- free media coverage

What does a competition analysis entail?

Should cover the same categories listed in the feasibility study. Actually experience what competitors have to offer! Managers and staff should visit operations to better understand the service and atmosphere

What are the ways that the food service industry adapted to the recession?

Some impacts were predictable, including slowed business expansion, reduced guest counts, and lower revenues. Industry reacted by increasing emphasis on comfort foods that guests have traditionally enjoyed, value-pricing tactics to increase guest visits, and decisions to offer smaller portions and a la carte menus so guests could select only those items that they desired found ways to reduce operating costs without sacrificing quality standards (laying off employees to reduce labor costs)

What is the difference between the front of the house and the back of the house? Use examples

The front of the house and the back of the house refer to the interaction and personal contact that employees of a restaurant have with its guests. The front of the house employees are those that interact with customers the most. These people include the host, the bartenders, as well as the servers. These people can highly impact the experience a guest has because they are seating them as well as taking their orders. The back of the house includes those that do not have reoccurring interaction with customers. The back of the house in a food service industry includes the head chef, the sous chef, cooks, as well as dishwashers. These people are essential to the operation of the restaurant, and can positively or negatively affect a guest's experience in a more indirect way than the front of the house.

Define value

Value can mean different things to different people. Typically, value refers to the importance or worth that something holds. In the food and beverage industry, value can be many things. Examples of what people may value include convenience, efficiency, quality of food, a particular atmosphere or ambiance, the overall experience, the service, etc. It is important for a food industry to establish a strong value proposition. When a company can identify what it is that its customer's value about their restaurant, it is easier to focus on attracting those guests or compensate for desires that are not being met.

What does a property analysis entail?

a written, unbiased appraisal of a food service operations's production and service areas, products, and services. It is used to assess the strengths and weaknesses of the operation. Buildings exterior, landscaping, evaluate traffic flow, visual appeal, accessibility, compatibility with local surroundings. (location, type, source of business... be able to compare with competition analysis.)

Who retains the profit in chain restaurants, franchise restaurants, independent restaurants?

chain restaurants- central owner or corporation franchise restaurants- the franchisor, although a portion of the profit goes to the franchisee independent restaurants- the owner/manager/partners of the independent restaurant

How is a franchise different from a chain?

franchise- a special type of chain operation in which a facility owner(franchisee) pays fees to a franchisor in exchange for the right to use the name, building design, and business methods of the franchisor. chain- a restaurant that is part of a multi-unit organization. Chain restaurants often have the same menu, purchase supplies and equipment cooperatively, and follow operating procedures that have been standardized for every restaurant in the chain **While a franchise property is affiliated with a chain, a chain property is not necessarily a franchise; it may be company-owned.

What does a market analysis entail?

identifies the food service operation's current markets and examine marketplace factors and trends that provide opportunities or pose threats Examples: guest profile research aids in positioning. Changes in demographics, events in the community, govt regulation, cost of travel are some factors. Trends include nutrition and lifestyle concerns.

What does a manager manage?

time, energy, atmosphere, procedures, employees, communication, delegation, restaurant concept, guest satisfaction, advertising, reputation, menu, brand, supplies, inventory, equipment, money, facilities, and community relationships (to name a few)