Types of Restaurants and Their Characteristics

A restaurant is a place where food & beverages are sold & served to customers. There are different types of restaurants that have evolved to meet the dynamic demands of consumers. The following are some well-known types of restaurants & their special characteristics:

Bistro: it is a small restaurant that serves simple, moderately priced meals & wine. Braised meets are typical dishes that are provided in a bistro. It may not have printed menus.

Brasserie: formal restaurant which serves drinks, single dishes & other meals. The waiters are in traditional uniform of long apron & waistcoats.

Coffee shop: mainly serves snacks & beverages 24 hours a day; however it may serve all the three meals. This concept has come from the USA. A ‘cover’ is a term referring to a place setting with necessary cutlery, crockery & glassware required at the beginning of the service for one person. Though the main feature is 24-hour operation, some coffee shops may close early, depending on their location.

Specialty Restaurant: it serves specialty dishes which are its strength & contribute to the brand image. It operates during luncheon & dinner hours, between noon & 3 PM & between 7 PM & 11 PM. The ambience & décor of the restaurant reflect the theme of the specialty restaurant. The dishes of a particular region of a country or a particular set of people are also termed as ethnic cuisine.

Fine Dining Restaurant: this kind of restaurant primarily caters to the requirement of the affluent market segment which wants to experience fine dining. The restaurant may either offer dishes of one particular region or country or exotic dishes from various cuisines, wines, spirits & digestives. It opens mostly during dinner time. The ambience & décor of the restaurant will be elegant & rich. The wait staff employed is skilled & has a sound knowledge of the dishes served. The restaurant employs sommeliers to serve wines & other alcoholic beverages.

Popular Restaurant: this type of restaurant is informal, yet hygienically kept & it is located in a busy area such as bus stands, railway stations, shopping area & so on, catering to the requirements of the middle class & the customers who are in a hurry. The menu may either be displayed on a board at a prominent place or printed & laminated. It operates from 7 AM to 11 PM. The food is plated in the kitchen & carried to the table on a tray & served. The service standards are low & informal. Space is utilized to the maximum to accommodate more covers. The seat turnover is very high but the average revenue per cover is low.

During busy lunch hours, these restaurants serve business lunch, mini-lunch, & thali meals in a separate area to speed up service.

Dhaba: it is a roadside food stall found on national & state highways, mainly catering to the requirements of heavy vehicle crew. It specializes in ounjabi cuisine & tandoor cooking, serving very limited dishes, which are freshly prepared. The service is very informal & there is hardly any cutlery used. The dishes served here are inexpensive & taste like home-made food.

Fast food joint: the fast food concept was first introduced in the USA & now it has become popular around the world. It is characterized by the speed of service & the affordable price of the menu items. Changes in eating habits, non-availability of time to wait at the table & eat, increase in the number of working women, advancement in food processing technology, growth of teenage market, & so on, have contributed to the success of fast food operations. It is located in very busy area.

Rotisserie: this type of restaurant specializes in grilled or roast meat, poultry, & fish, which are prepared in front of the guests.

Barbeque restaurant: the marinated pieces of meat, poultry, fish, vegetables, paneer, & so on, are inserted into skewers & cooked over live charcoal or electric griller. It is generally located near a swimming pool, roof top, lawn, sea side, & so on, & is open during evening hours.

Night club: it operates during the night & offers dinner, dance, & live entertainment. Cabarets or floor shows are the main attraction of the night club. Guests are required to wear formal wear.

Night clubs levy an entry fee.

Discotheque: it operates during night hours. It provides a dance floor for guest to dance on. Special sound & lightning effect is created for an appropriate ambience. Drinks, especially beer, & snacks are made available during the operations. The service is very informal. It is patronized mostly by the youth & couples. The entry is limited to a certain number of guests according to the floor/room capacity & an entry fee is levied.

Ice Cream parlor: it serves different kinds of ice creams-sundae, coupe, bombe, cassata, & so on. These ice creams are stored in ice cream containers & are kept in refrigerated displays with see through glass. The parlors may either be a franchisee or an independent one making its own varieties of ice creams. The seating arrangements & service are very informal. Guests may either eat in the premises or have it packed & carry.

Cafe: this is a restaurant of French origin, mainly serving coffee & snacks. The French colonies in India, but served Indian snacks such as vada, samosas, bonda, & so on, along with coffee & pastries. The customers are served at the table following the American style which increases the seat turnover, but the average revenue per cover is low due to the lower pricing of dishes.

Cafeteria: the traditional cafeteria system consists of a straight line of counters containing a variety of hot & cold dishes. The cashier who is at the end of the counter makes bills for the items selected & collects payment. This form is widely followed in institutional & industry catering establishments.

In modern ‘ free flow cafeteria’ system, the counters are segregated according to the type of dishes offered-hot or cold, appetizers, soups, breads, sandwiches, entrees, salads, pastas & so on. In most cafeteria-style operations in India, guests make payment at the counter beforehand for items they want to eat & collect them against the bill at the appropriate counters. Cafeterias are situated in railway stations, cinema halls, shopping complexes, college premises, office premises, & so on, where the guest expects quick service.

Food Court: it refers to a number of independent food stalls, each serving items of food. The customers order the food items they want to have & consume them at a common dining area. The types of dishes offered represent local cuisine & dishes that are popular globally. Food courts are found in big shopping complexes, entertainment complexes, amusement parks, airports, & so on where there is a heavy traffic of customers.

Kiosk: it is small permanent or temporary structure on a sidewalk from which items such as coffee, tea, chocolates, pastries, savories & so on, may be sold. Most kiosks do not have seating provision.

Drive-in: customers drive in, park their vehicles at a parking lot, & remain seated in their vehicles. The waiters go to the customers with menu cards, collect orders, & deliver the food items on specially designed trays & the customers remain parked while they eat.

Oyster Bar: it is a restaurant that specializes in the serving of fresh oysters. The oysters are opened or shelled behind the counter, within the sight of guests. Fresh oysters are served on a bed of crushed ice with oyster cruet, brown bread, & butter.

Pub: it mainly serves various kinds of beer, especially draught beer, & snacks.

Bars: it offers all kinds of spirits such as whiskey, rum, gin, vodka, brandy, tequila, wines, & beers. Hotels & restaurants have an additional bar in the food service area/restaurant to dispense wines, beers, & spirits during the service, called a dispense bar.

Carvery: it is restaurant serving roast meat & poultry, which are carved at the carving counter by a carver in the presence of guests. Table d’hôte menu of three or four courses with roast meat or poultry as the main course is offered.

Restaurants Kinds and Characteristics

Broadly speaking, restaurants can be categorized into a number of categories:
1. Chain or independent (indy) and franchise restaurants. McDonald's, Union Square Cafe, or KFC
2. Quick service (QSR), sandwich. Burger, chicken, and so on; Convenience store, noodle, pizza
3. Fast casual. Panera Bread, Atlanta Bread Company, Au Bon Pain, and so on
Family. Bob Evans, Perkins, Friendly's, Steak 'n Shake, Waffle House
5. Casual. Applebee's, Hard Rock Caf'e, Chili's, TGI Friday's
6. Fine dining. Charlie Trotter's, Morton's Steakhouse, Flemming's, The Palm, Four Seasons
7. Other. Steakhouses, seafood, ethnic, dinner houses, celebrity, and so on. Of course, some restaurants fall into more than one category. For example, an Italian restaurant could be casual and ethnic. Leading restaurant concepts in terms of sales have been tracked for years by the magazine Restaurants and

The impression that a few huge quick-service chains completely dominate the restaurant business is misleading. Chain restaurants have some advantages and some disadvantages over independent restaurants. The advantages include:

1. Recognition in the marketplace
2. Greater advertising clout
3. Sophisticated systems development
4. Discounted procurement

When franchising, various kinds of assistance are available. Independent restaurants are reliably easy to open. All you need is a few thousand dollars, a knowledge of restaurant operations, and a strong desire to
Succeeded. The advantage for independent restaurateurs is that they can 'do their own thing' in terms of concept development, menus, decor, and so on. Without our habits and taste change drastically, there is plenty of room for independent restaurants in certain locations. Restaurants come and go. Some independent restaurants will grow into small chains, and larger companies will buy out small chains.

Once small chains display growth and popularity, they are likely to be bought out by a larger company or will be able to acquire financing for expansion. A temptation for the beginning restaurateur is to observe large restaurants in big cities and to believe that their success can be duplicated in secondary cities. Reading the restaurant reviews in New York City, Las Vegas, Los Angeles, Chicago, Washington, DC, or San Francisco may give the impression that unusual restaurants can be replicated in Des Moines, Kansas City, or Main Town, USA. Because of demographics, these high-style or ethnic restaurants will not click in small cities and towns.

5. Will go for training from the bottom up and cover all areas of the restaurant's operation Franchising involves the least financial risk in that restaurant format, including building design, menu, and marketing plans, already have been tested in the marketplace. Franchise restaurants are less likely to go belly up than independent restaurants. The reason is that the concept is proven and the operating procedures are established with all (or most) of the kinks worked out. Training is provided, and marketing and management support are available. The increased likelihood of success does not come cheap, however.

There is a franchising fee, a royalty fee, advertising royalty, and requirements of personal personal net worth. For those lacking substantive restaurant experience, franchising may be a way to get into the restaurant business-providing they are prepared to start at the bottom and take a crash training course. Restaurant franchisees are entrepreneurs who prefer to own, operate, develop, and extend an existing business concept through a form of contractual business arrangement called franchising.1 Several franchises have ended up with multiple stores and made the big time. Naturally, most aspiring restaurateurs want to do their own thing-they have a concept in mind and can not wait to go for it.

Here are examples of the costs involved in franchising:

1. A Miami Subs traditional restaurant has a $ 30,000 fee, a royalty of 4.5 percent, and requires at least five years' experience as a multi-unit operator, a personal / business equity of $ 1 million, and a personal / business
Net worth of $ 5 million.

2. Chili's requires a monthly fee based on the restaurant's sales performance (currently a service fee of 4 percent of monthly sales) plus the greater of (a) monthly base rent or (b) percentage rent that is at least 8.5 percent of monthly sales .

3. McDonald's requires $ 200,000 of nonborrowed personal resources and an initial fee of $ 45,000, plus a monthly service fee based on the restaurant's sales performance (about 4 percent) and rent, which is a
Monthly base rent or a percentage of monthly sales. Equipment and preopening costs range from $ 461,000 to $ 788,500.

4. Pizza Factory Express Units (200 to 999 square feet) require a $ 5,000 franchise fee, a royalty of 5 percent, and an advertising fee of 2 percent. Equipment costs range from $ 25,000 to $ 90,000, with miscellaneous costs of $ 3,200 to $ 9,000 and opening inventory of $ 6,000.

5. Earl of Sandwich has options for one unit with a net worth requirement of $ 750,000 and liquidity of $ 300,000; For 5 units, a net worth of $ 1 million and liquidity of $ 500,000 is required; For 10 units, net worth
Of $ 2 million and liquidity of $ 800,000. The franchise fee is $ 25,000 per location, and the royalty is 6 percent.

What do you get for all this money? Franchisors will provide:

1. Help with site selection and a review of any proposed sites
2. Assistance with the design and building preparation
3. Help with preparation for opening
Training of managers and staff
5. Planning and implementation of pre-opening marketing strategies
6. Unit visits and ongoing operating advice

There are hundreds of restaurant franchise concepts, and they are not without risks. The restaurant owned or leased by a franchisee may fail even though it is part of a well-known chain that is highly successful. Franchisers also fail. A case in point is the highly touted Boston Market, which was based in Golden, Colorado. In 1993, when the company's stock was first offered to the public at $ 20 per share, it was eager bought, increasing the price to a high of $ 50 a share. In 1999, after the company declared bankruptcy, the share price sank to 75 cents. The contents of many of its stores were auctioned off at
A fraction of their cost.7 Fortunes were made and lost. One group that did not lose was the investment bankers who put together and sold the stock offering and received a sizable fee for services.

The offering group also did well; They were able to sell their shares while the stocks were high. Quick-service food chains as well-known as Hardee's and Carl's Jr. Have also gone through periods of red ink. Both companies, now under one owner called CKE, experienced periods as long as four years when real incomes, as a company, were negative. (Individual stores, company owned or franchised, however, may have done well during the down periods.) There is no assurance that a franchised chain will prosper.

At one time in the mid-1970s, A & W Restaurants, Inc., of Farmington Hills, Michigan, had 2,400 units. In 1995, the chain numbered a few more than 600. After a buyout that year, the chain expanded by 400 stores. Some of the expansions took place in nontraditional locations, such as kiosks, truck stops, colleges, and convenience stores, where the full-service restaurant experience is not important. A restaurant concept may do well in one region but not in another. The style of operation may be highly compatible with the personality of one operator and not another.

Most franchised operations call for a lot of hard work and long hours, which many people perceive as drudgery. If the franchisee lacks sufficient capital and leases a building or land, there is the risk of paying more for the lease than the business can support. Relations between franchisers and the franchisees are often strained, even in the largest companies. The goals of each usually differ; Franchisers want maximum fees, while franchisees want maximum support in marketing and franchised service such as employee training. At times, franchise chains get involved in litigation with their franchises.

As franchise companies have set up hundreds of franchises across America, some regions are planned: More franchised units were built than the area can support. Current franchise holders complain that adding more franchises serves only to reduce sales of existing stores. Pizza Hut, for example, stopped selling
Franchises except to well-qualified buyers who can take on a number of units. Overseas markets institute a large source of the income of several quick-service chains. As might be expected, McDonald's has been the leader in overseas expansions, with units in 119 countries.

With its roughly 30,000 restaurants serving some 50 million customers daily, about half of the company's profits come from outside the United States. A number of other quick-service chains also have large numbers of franchised units abroad. While the beginning restaurateur quite rightly concentrates on being successful here and now, many bright, ambitious, and energetic restaurateurs think of future possibilities abroad. Once a concept is established, the entrepreneur may sell out to a franchiser or, with a lot of guidance, take the form overseas through the franchise. (It is folly to build or buy in a foreign country without a partner who is financially secure and well versed in the local laws and culture.).

The McDonald's success story in the United States and abroad illustrates the importance of adaptability to local conditions. The company opens units in illegally locations and closes those that do not do well. Abroad, men are tailor to fit local customs. In the Indonesia crisis, for example, french fries that had to be imported were taken off the menu, and rice was substituted. Reading the life stories of big franchise winners may suggest that once a franchise is well established, the way is clear sailing. Thomas Monaghan, founder of Domino Pizza, tells a different story. At one time, the chain had accumulated a debt of $ 500 million. Monaghan, a devout Catholic, said that he changed his life by renouncing his greatest sin, pride, and rededicating his life to '' God, family, and pizza. ''

A meeting with Pope John Paul II had changed his life and his feeling about good and evil as '' personal and abiding. '' Monaghan's case, the rededication worked well. There are 7,096 Domino Pizza outlets worldwide, with sales of about $ 3.78 billion a year. Monaghan sold most of his interest in the company for a reported $ 1 billion and announced that he would use his fortune to further Catholic church causes. In the recent past, most food-service millionaires have been franchisers, yet a large number of would-be restaurateurs, especially those enrolled in university degree courses in hotel and restaurant management, are not very excited about being a quick-service franchisee.

They prefer owning or managing a full-service restaurant. Prospective franchisees should review their food experience and their access to money and decision which franchise would be appropriate for them. If they have little or no food experience, they can consider starting their restaurant career with a less expensive franchise, one that provides start-up training. For those with some experience who want a proven concept, the Friendly's chain, which began franchising in 1999, may be a good choice. The chain has more than 700 units. The restaurants are considered family dining and feature ice cream specialties, sandwiches, soups, and quickservice meals.

Let's emphasize this point again: Work in a restaurant you enjoy and sometimes would like to emulate in your own restaurant. If you have enough experience and money, you can strike out on your own. Better yet, work in a successful restaurant where a partnership or proprietorship may be possible or where the owner is thinking about retiring and, for tax or other reasons, may be willing to take payments over time.
Franchisees are, in effect, entrepreneurs, many of whom create chains within chains.

McDonald's had the highest system-wide sales of a quick-service chain, followed by Burger King. Wendy's, Taco Bell, Pizza Hut, and KFC came next. Subway, as one among hundreds of franchisers, gained total sales of $ 3.9 billion. There is no doubt that 10 years from now, a listing of the companies with the highest sales will be different. Some of the current leaders will experience sales Declines, and some will merge with or be bought out by other companies-some of which may be financial giants not previously engaged in the restaurant business.

Do You Know Your Objectives in Networking?

Networking is Much More Than Socializing

Casual networkers view networking as a form of socializing without focus and without goals. Effective networkers view it as a process of relationship building with very clear goals and objectives.

Business networking, like any other business activity, must be a productive use of time. To maximize your networking effectiveness, you should therefore clearly define your goals and objectives.

Following are some of the most common objectives for business networkers:

Broaden your exposure in the marketplace and create a positive impression on as many people in your business community as possible.

Identify those who might be prospects for your products or services

Build relationships with those who offer products or services that might be of value to you or your clients.

Build relationships with those who might become referral or strategic partners.

Build relationships with those who are influential in your business community.

Build relationships with those who can further your career.

Build relationships with those who might provide business counsel or become advisors or mentors.

Those with whom you network are experts in their fields. They can answer questions about their area of specialization, share their business experience and knowledge, and may in some instances become mentors. No one can know all there is to know about business and the advice of others can at times be extremely valuable. Networking at trade association expos and conferences will allow you to meet executives from other companies who might some day be your employer or be able to recommend you for an opening they have heard about. Earning the respect of those in your local community can lead to offers when positions become available. We have all heard the idiom: “It is not what you know, it is who you know that counts.” Building relationships with the most influential members of your business community is a key to your success.

Referral partners are individuals who are able and willing to send you referrals in exchange for your help sending referrals to them. To find them at a networking event, you must have carefully thought through who the best referral partners for you might be. You must also have a strategy for turning a casual meeting into an opportunity to develop the relationship. As a business person you and the firm for which you work have needs for a wide variety of products and services. Networking is an effective way of meeting those who provide these products and services in your local community. Your customers also need a variety of products or services for business and personal use. If you can direct them to reputable providers of those services, you will be more valued as a resource and their loyalty will be enhanced. Keeping your client’s needs in mind as you meet others at networking events, should be a habit you develop.

Most view this as the primary objective of networking. To identify prospects and create sales opportunities, you must be prepared to describe your business and its benefits clearly and succinctly. You must also be ready to qualify “suspects” and, if necessary, present your Unique Selling Proposition. The goal of an initial networking contact is not to close a deal, it is to create a follow up opportunity. Networking is an extremely effective way of creating awareness in your business community. For many start up companies, it is the only form of marketing that can be afforded. Fortunately, networking can also be the most effective form of marketing available.

Most business professionals view networking as a means of marketing their business, but overlook some of the other objectives that may be equally or even more important. Too much emphasis on selling at networking events can leave a negative impression. If you want to make a positive impression, make sure the discussion centers on them, not you.

What goals and objectives have you set for your networking activities? Which are most important? How will you measure your success? Like any other business activity, you must approach your networking with goals and a plan to achieve them.

Management and Financial Accounting

Accounting is usually seen as having two distinct strands, Management and Financial accounting. Management accounting, which seeks to meet the needs of managers and Financial accounting, which seeks to meet the accounting needs of all of the other users. The differences between the two types of accounting reflect the different user groups that they address. Briefly, the major differences are as follows:

  • Nature of the reports produced. Financial accounting reports tend to be general purpose. That is, they contain financial information that will be useful for a broad range of users and decisions rather than being specifically designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, are often for a specific purpose. They are designed either with a particular decision in mind or for a particular manager.
  • Level of detail. Financial reports provide users with a broad overview of the performance and position of the business for a period. As a result, information is aggregated and detail is often lost. Management accounting reports, however, often provide managers with considerable detail to help them with a particular operational decision.
  • Regulations. Financial reports, for many businesses, are subject to accounting regulations that try to ensure they are produced with standard content and in a standard format. Law and accounting rule setters impose these regulations. Since management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports. They can be designed to meet the needs of particular managers.
  • Reporting interval. For most businesses, financial accounting reports are produced on an annual basis, though many large businesses produce half-yearly reports and a few produce quarterly ones. Management accounting reports may be produced as frequently as required by managers. In many businesses, managers are provided with certain reports on a monthly, weekly or even daily basis, which allows them to check progress frequently. In addition, special-purpose reports will be prepared when required (for example, to evaluate a proposal to purchase a piece of machinery).
  • Time horizon. Financial reports reflect the performance and position of the business for the past period. In essence, they are backward looking. Management accounting reports, on the other hand, often provide information concerning future performance as well as past performance. It is an oversimplification, however, to suggest that financial accounting reports never incorporate expectations concerning the future. Occasionally, businesses will release projected information to other users in an attempt to raise capital or to fight off unwanted takeover bids.
  • Range and quality of information. Financial accounting reports concentrate on information that can be quantified in monetary terms. Management accounting also produces such reports, but is also more likely to produce reports that contain information of a non-financial nature such as measures of physical quantities of inventories (stocks) and output. Financial accounting places greater emphasis on the use of objective, verifiable evidence when preparing reports. Management accounting reports may use information that is less objective and verifiable, but they provide managers with the information they need.

We can see from this that management accounting is less constrained than financial accounting. It may draw on a variety of sources and use information that has varying degrees of reliability. The only real test to be applied when assessing the value of the information produced for managers is whether or not it improves the quality of the decisions made.

The distinction between the two areas reflects, to some extent, the differences in access to financial information. Managers have much more control over the form and content of information they receive. Other users have to rely on what managers are prepared to provide or what the financial reporting regulations state must be provided. Though the scope of financial accounting reports has increased over time, fears concerning loss of competitive advantage and user ignorance concerning the reliability of forecast data have led businesses to resist providing other users with the detailed and wide-ranging information that is available to managers.