I CEV20052 Structureofthe Food Service Industry

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The key takeaways are that the hospitality industry employs over 14 million Americans and includes recreation & entertainment, lodging, and food service. The food service industry can be divided into commercial and institutional, with commercial focusing on profits and institutional focusing on supporting the establishment's main function.

The main components of the hospitality industry are recreation & entertainment, lodging, and food service. Recreation & entertainment includes amusement parks, performances, and resorts. Lodging includes hotels, motels, and bed & breakfasts. Food service includes restaurants, catering, institutional cafeterias, and vending machines.

The two main types of food service are commercial and institutional. Commercial food service is provided to the general public with the main goal of generating profits, accounting for about 75% of the industry. Institutional food service is provided by establishments like hospitals and schools to support their main functions and accounts for about 25%.

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Objectives
1. To discuss the hospitality industry and the types of
businesses included.
2. To analyze the history of the food service industry
and note people who have influenced its evolution.
3. To differentiate commercial and institutional food
service and identify various types of food service
operations.
4. To recognize the various types of food service
ownership.
5. To explore food service management and the job
opportunities in food service. 2
Main Menu

The Hospitality Industry


History & Influence
Types of Food Service
Food Service Ownership
Food Service Management
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4
The Hospitality Industry
• Refers to all of the services
people use when they are
away from home
• Is considered a segment
of the travel and tourism
industry
– also includes the transportation
service industry
• Employs more than 14 million Americans
5
The Hospitality Industry
• Is primarily a service industry
– even though a good, or tangible product, is often
provided, the main focus is the experience and
courtesy involved
• Is concerned with providing goods and
services which make travel and leisure more
enjoyable and
convenient

6
The Hospitality Industry
• Includes:
– recreation and entertainment
– lodging
– food service

7
Recreation & Entertainment
• Includes:
– amusement and theme parks
– museums, zoos and exhibits
– theatrical and musical performances
– sports events and clubs
– casinos
– ski resorts
– beaches and marinas

8
Lodging
• Includes:
– resorts
– hotels
– bed and breakfast houses
– motels
– trailer and RV parks

9
Food Service
• Includes:
– commercial food service
• provided to the general public with the main goal
of generating profits
• accounts for roughly 75 percent of the food
service industry

10
Food Service
• Includes:
– institutional food service
• provided by institutions such as hospitals and
schools for members, visitors, etc. with the main
goal of supporting the establishment’s main
function
• accounts for roughly 25 percent of the food
service industry

11
Food Service
• Includes:
– commercial
• restaurants • prepared food retail
• catering • vending machines

– institutional • child-care facilities


• stadiums and clubs • military facilities
• airlines • health-care facilities
• cruises • businesses
• schools and universities

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Food Service Concepts
• Incorporate all details of the operation
– type of food
– services provided
– décor and/or theme
– price range
– expected target customers

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Assessment
1. How many Americans are employed by the hospitality industry?
A. 4 million
B. 14 million
C. 24 million
D. 4 billion

2. Which of the following is true of the hospitality industry?


A. It refers to all services people use when they are away
from home
B. It is primarily a goods industry
C. It is concerned with making home life more comfortable
D. It is a segment of the consumer services industry

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Assessment
3. Which of the following is NOT included in the hospitality
industry?
A. Lodging
B. Transportation service
C. Food service
D. Recreation and entertainment

4. Which segment of the hospitality industry includes theme parks,


zoos and beaches?
A. Lodging
B. Transportation service
C. Food service
D. Recreation and entertainment
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Assessment
5. Commercial food service accounts for roughly what percentage
of the food service industry?
A. 41 percent
B. 57 percent
C. 75 percent
D. 91 percent

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Food Service Industry
Early History

Dining out was uncommon, Haute cuisine, an elaborate


but private clubs, called and refined system of food
lesche, offered food to preparation was created.
members. Establishments Also, cooking guilds were
called phatnai catered to formed and established many
travelers and traders. of the professional standards
475-1300 A.D.
and traditions still used today.
The Middle Ages

300-400 B.C. 1400-1600 A.D.


Ancient Greece Landowners held large The Renaissance
and Rome banquets almost every
night, meaning cooks had
to prepare foods in large
quantities.

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Food Service Industry
Early History
The first coffeehouse, or After the French Revolution,
café, opened. As they many cooks found
became more popular, they themselves unemployed and
made eating in public more so they began to follow
acceptable and less taboo. Boulanger’s example and
open restaurants. Within 30
1765
years, Paris had over 500!
Paris, France

1650 1800-1830
Oxford, England A man named Boulanger Paris, France
began serving hot soups for
health, called restaurers
(meaning restoratives). He
called his café a restorante,
which eventually became
today’s “restaurant”.
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Food Service Industry
History in America
Very few early With the invention of the
colonists ever dined railroad, food service
out, but an inn called facilities in inns, taverns
Cole’s offered food and other shops became
and lodging to common near railway
travelers. Early 1800s stations. 1888
New England New York City

1634 1825-1900
Boston, European-
Massachusetts Vending machines were
style coffee
introduced in the United
shops began
States when installed on
appearing.
subway platforms. They
sold Tutti-Fruiti gum.

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Food Service Industry
History in America
The classic American diner was Cafeterias, or
developed to feed factory workers. At restaurants using
first, they were horse-drawn kitchens assembly-line serving
on wheels which would be parked style, were created to
near the factories. Eventually, owners quickly and cheaply
began buying property on which to serve the poorer
permanently park the diner carts. masses.

1800s 1850s-1920s

As factory owners became


wealthy and eating out
became a status symbol,
entrepreneurs opened fancy
restaurants offering dinners
of up to 18 courses.

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Food Service Industry
History in America
With employment at The first quick-service,
an all-time high, or fast-food, restaurant,
many restaurants White Castle®, was
specializing in lunch opened.
opened.
March, 1919
Kansas City 1921
1900-1929 1921
Kansas City Wichita, Kansas
restaurateurs launched
a national organization, Roy Allen and Frank Wright
holding the first meeting begin selling rights allowing
of what is today’s people to sell their root
National Restaurant beer (A&W ®), creating the
Association. first food franchise.

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Food Service Industry
History in America
Quick-service restaurants became quite
Food service growth popular, partly due to the increased
slowed, but availability of the automobile. Dairy
continued despite Queen®, Carl’s Jr.®, McDonald’s®,
economic difficulty. Sonic®, Whataburger®, Pizza Hut®,
Baskin-Robbins®, Dunkin’ Donuts ® and
many more opened during this period.
1927
1930s 1940s-1950s
Great Depression
Franchising became common
Imperial Airways practice for restaurateurs. For
introduced the first in-flight example, McDonald’s® had 200
lunch service, serving restaurants by 1960.
sandwiches on a flight from
London to Paris.
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Food Service Industry
History in America
As Americans grew wealthier and
traveled more, demand for exotic
The National Restaurant cuisine increased. More
Association endorses the complicated foods with foreign
use of credit cards. influence, such as fondue,
became popular.
1960s
1950s 1960s-1970s
Fast-food and casual,
family-style, full-
service restaurants
took over, and the
older-style diners and
cafeterias drastically
decreased in number.
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Food Service Industry
History in America
Public health concerns about
The National
nutrition and obesity caused
Restaurant Association
restaurants to reform their menus
launches Restaurants
and offer healthier options. Some
USA magazine to keep
restaurants even began reporting
members updated on
nutritional information on menus
industry news.
and/or packaging.
1970s 1987
1981 1990s-2000s
Ethnic and themed The National Restaurant
restaurants became Association Educational
popular. Kahiki®, an Foundation was created to
elaborate Polynesian produce educational programs
restaurant in Columbus, and materials on everything
Ohio, was among the from food safety to responsible
most famous. alcohol service.
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The Food Service Industry
• Has been influenced by many great chefs,
including:
– Marie-Antoine Carême – Joël Robuchon
– Georges August Escoffier – Alain Chapel
– Fernand Point – Michel Bras
– Julia Child – Jean-Louis Palladin
– Paul Bocuse – Nobu Matsuhisa
– Alice Waters – Alain Ducasse
– Ferdinand Metz – Ferran Adria

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The Food Service Industry
• Has been influenced by many great
entrepreneurs, including:
– the Delmonico brothers – Frank Carney
– Fred Harvey – Norman Brinker
– Walter Scott – Bill Darden
– Walter Anderson
– Zev Siegal
– E.W. Ingram
– Howard Johnson – Jerry Baldwin
– Ray Kroc – Gordon Bowker
– Joe Baum – Richard Melman
– Tom Ryan 28
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Assessment
1. When were cooking guilds formed, establishing many of the
professional standards and traditions still used today?
A. 300-400 B.C. in ancient Greece and Rome
B. 475-1300 A.D. during the Middle Ages
C. 1400-1600 A.D. during the Renaissance
D. 1800-1830 A.D. in Paris, France

2. When and where were the first vending machines introduced in


the United States?
A. 1634 in Boston, Massachusetts
B. 1888 in New York City
C. 1919 in Kansas City
D. 1924 in Philadelphia, Pennsylvania
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Assessment
3. Which of the following occurred in 1921 in Wichita, Kansas?
A. The first in-flight lunch was introduced
B. The first meeting of the National Restaurant Association
took place
C. The first food franchise, McDonald’s®, was started
D. The first quick-service restaurant, White Castle®, was
opened

4. Which type of restaurants took over in the 1960s?


A. Fast-food and casual, family-style restaurants
B. Cafeterias and buffets
C. Classic American diners
D. Fine-dining restaurants and banquet halls
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Assessment
5. The National Restaurant Association Educational Foundation
was created in which year?
A. 1969
B. 1974
C. 1987
D. 1992

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Types of Food Service
• Include:
– restaurants
– catering
– prepared food retail
– vending machines
– institutional

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Restaurants
• Come in a wide variety of sizes and types
• May be classified as:
– full service
– quick casual
– quick service
– cafeteria
– buffet
– mobile (food truck)

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Full-Service Restaurants
• Include full-service fine dining and full-
service casual dining
• Offer complete table service
– server takes orders, brings all food and drinks to
the table, and is attentive throughout the meal
• Use high-quality plates, glasses and utensils

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Full-Service Fine Dining
• Offers very high-quality cuisine, often cooked
by an expert chef
– multiple courses
– visually appealing presentation
• Offers formal service and atmosphere
– table cloths
– fine china and silverware
– formally dressed servers
– elegant décor
• Is the highest priced type of restaurant
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Full-Service Fine Dining
• Includes:
– Morton’s®
– Ruth’s Chris Steakhouse®
– Pappadeaux Seafood Kitchen®
– Roy’s Hawaiian Fusion Cuisine®
– Spago® by Wolfgang Puck

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Full-Service Casual Dining
• Offers quality food and
drink
• Offers casual service and
atmosphere
– family friendly and relaxing
– no dress code
– casual décor
• Is usually catered toward the middle class
• Is less expensive than fine dining, but more
expensive than quick-casual dining 39
Full-Service Casual Dining
• Includes:
– On the Border®
– Chili’s®
– Ruby Tuesday®
– Cracker Barrel®
– Red Lobster®

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Quick-Casual Restaurants
• Do not offer full table service
– guests usually order at a counter and either the
food is delivered to the table or the guest picks it
up at a window
• Offer higher quality food than quick-service
restaurants
– typically food quality is equal to food quality of
full-service casual dining restaurants
• Sometimes use disposable plates, cups and
utensils
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Quick-Casual Restaurants
• Include:
– Jason’s Deli®
– Genghis Grill®
– Five Guys® Burgers and Fries
– McAlister’s Deli®
– Chipotle Mexican Grill®

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Quick-Service Restaurants
• Are also known as fast-food restaurants
• Do not offer table service
• Typically offer a drive-through window or
delivery services
• Offer budget-friendly food
• Use disposable packaging

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Quick-Service Restaurants
• Include:
– McDonald’s®
– Taco Bell®
– Kentucky Fried Chicken®
– Subway®
– Duncan Donuts®

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Cafeteria Restaurants
• Allow customers to view and select food
choices at a counter of options and carry
meals to tables on trays
• Offer a wide variety of food
• Do not offer full table service
– some may offer table service for drinks only
• May charge one flat
for admission or may
charge per item
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Cafeteria Restaurants
• Include:
– Furr’s®
– Luby’s®

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Buffet Restaurants
• Are similar to cafeteria restaurants, but
customers serve themselves
• Offer a wide variety of food
• Do not offer full table service
– some may offer table service for drinks only
• Are typically “all you can eat” for one price

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Buffet Restaurants
• Include:
– Golden Corral®
– CiCi’s Pizza®
– Old Country Buffet®
– HomeTown Buffet®

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Mobile Restaurants
• Are also known as food trucks or food carts
• Are kitchens built into vehicles which drive
among locations to sell food
• May sell snacks, treats or full meals
• Allow customers to walk up to the vehicle to
select their food and carry their food away
from the vehicle to eat
• Are usually budget friendly

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Catering
• Is large-scale food service for events, such
as weddings, corporate dinners or parties
• Is offered by independent catering
companies and some hotels and restaurants
• May mean delivering food to the event or
cooking food at the event’s location

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Prepared Food Retail
• Consists of retail stores which sell home
meal replacements and ready-made dishes
• Has become a popular choice among
consumers
• Examples include:
– grocery stores selling
rotisserie chicken
– convenience stores selling
hot dogs
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Vending Machines
• Are machines which allow
customers to insert money,
push buttons indicating their
food choice, and collect their
food after it is dispensed
• Are popular in schools,
businesses and public
transportation centers

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Institutional Food Service
• Is food service provided by institutions such
as hospitals and schools for members,
visitors, etc. with the main goal of supporting
the establishment’s main function
• Includes partnerships between institutions
and commercial food service operations
– for example, a school or hospital might have
well-known restaurants provide food service
within the institution
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Assessment
1. Which type of restaurant offers very high-quality cuisine often
cooked by an expert chef?
A. Full-service fine dining
B. Quick-casual restaurant
C. Cafeteria
D. Mobile restaurant

2. According to the segment, which of the following is an example


of a quick-casual restaurant?
A. Red Lobster®
B. Taco Bell®
C. Genghis Grill®
D. Luby’s®
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Assessment
3. Which type of restaurant is self-serve and typically “all you can
eat” for one price?
A. Quick-service
B. Quick-casual
C. Cafeteria
D. Buffet

4. Mobile restaurants are also known as which of the following?


A. Fast-food restaurants
B. Food trucks or carts
C. Classic American diners
D. To-go food service

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Assessment
5. Alicia does not want to make herself dinner tonight, but she
wants to eat at home, so she went to the grocery store to
purchase a prepared meal. Alicia is patronizing which type of
food service?
A. Fast-food restaurant
B. Catering
C. Prepared food retail
D. Vending

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Food Service Ownership
• Includes:
– corporate groups
– chains
– franchises
– independents

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Corporate Food Service Groups

• Are groups of food service concepts which


are owned by a single firm
– the company may own the actual operations, or
may simply own the right to the name and
concept

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Corporate Food Service Groups

• Include:
– Yum!® Brands owns Kentucky Fried Chicken®,
Pizza Hut® and Taco Bell®
– Darden® Restaurants owns Red Lobster®, Olive
Garden®, LongHorn Steakhouse® and more
– Bloomin’® Brands owns Outback Steakhouse®,
Carrabba’s®, Fleming’s® and more

61
Food Service Chains
• Are multiple units of a single food service
concept with one owner
– each restaurant is the same and the ownership
is the same
• May be a part of a corporate
group
• Include:
– The Cheesecake Factory®
– Cracker Barrel®
– Starbucks®
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Food Service Franchises
• Are multiple units of a food service concept
individually owned by multiple parties
– each restaurant is the same, but ownership is
not the same
– the owner of the concept allows others to use its
name, products, etc.
• franchise agreements vary, but usually include
strict requirements and guidelines for franchisees
• May also be part of a corporate group

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Food Service Franchises
• Are extremely common
• Include:
– Applebee’s®
– Buffalo Wild Wings®
– Cinnabon®
• Denny’s®
• Dippin’ Dots®
• McDonald’s®

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Chains & Franchises
• Often overlap
– sometimes a food service concept owner will
own and operate multiple units of the concept
before franchising the concept to others
• for example, one-third of Red Robin® restaurants
are franchised and two-thirds are company owned

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Chains & Franchises
• Often overlap
– often a company will be a chain domestically,
owning all operations in the United States, but be
a franchise internationally, with operations in
other countries being owned by franchisees
• for example, P.F. Chang’s®, Olive Garden® and
Outback Steakhouse®

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Independent Ownership
• Consists of an individual or group who
develops a new concept and opens new a
food service operation which was previously
nonexistent
• Can eventually develop into a chain or
franchise if the owner decides to expand

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Assessment
1. Which of the following accurately describes corporate food
service groups?
A. Multiple units of a single food service concept owned by a
single group of people
B. Groups of food service concepts which are owned by a
single firm
C. Multiple units of a single food service concept owned by
multiple parties
D. Groups people who invest in, but do not own, food service
concepts

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Assessment
2. The type of ownership in which each restaurant is the same and
the ownership of each restaurant is the same is known as which
of the following?
A. Food service corporation
B. Food service franchise
C. Independent food service operation
D. Food service chain

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Assessment
3. Joe wants to open a restaurant and feels his best chance of
being successful would be to purchase the rights to a well-known
restaurant concept. This form of restaurant ownership is known
as which of the following?
A. Food service corporation
B. Food service franchise
C. Independent food service operation
D. Food service chain

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Assessment
4. The type of ownership in which each restaurant is the same but
the ownership of each restaurant is not the same is known as
which of the following?
A. Food service corporation
B. Food service franchise
C. Independent food service operation
D. Food service chain

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Assessment
5. Joe realizes it will cost him too much to buy rights to a well-
known restaurant concept so he decides to develop a new
concept which was previously nonexistent. Which of the
following describes this type of ownership?
A. Food service corporation
B. Food service franchise
C. Independent food service operation
D. Food service chain

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Food Service Management
• Is a career valuing professionalism, which
requires:
– communication – accountability
– leadership – attention to detail
– cooperation – flexibility
– patience – financial responsibility
– honesty – energy
– organization – ability to multi-task

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Food Service Management
• Includes managers for the following areas of
food service:
– general management
– front of house
• dining room manager
• bar manager
– back of house
• kitchen manager
• May share or split responsibilities

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General Managers
• Have responsibilities including:
– managing employees
• hiring and firing
• training and supervising
• making schedules
– maintaining the business and its property
• ensuring safe working conditions
• planning the menu
• ordering supplies
– controlling the quality of food and service
• developing and enforcing standards
and policies 77
General Managers
• Have responsibilities including:
– promoting the business
• making marketing decisions
• networking for the business
– ensuring the business is profitable
• managing prices, salaries and operating costs
• recording and analyzing finances
– seeing the entire operation runs smoothly
• maintaining relationships with customers and staff
• making important business decisions

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Front of House
• Is the term used to describe the part of the
operation which directly serves customers
• Includes:
– dining room and bar managers
– hosts and hostesses
– serving staff
– bar staff
– cashiers
– busers

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Dining Room Managers
• Oversee the following:
– hosts and hostesses
• take reservations, welcome customers, seat
customers, answer customer questions
– servers
• take orders, serve food and beverages, attend to
customers’ needs during the meal, present the bill
– busers
• clear and clean tables after customers have left
– cashiers
• receive customers’ payment
80
Bar Managers
• Oversee the following:
– bartenders
• mix alcoholic drinks, serve alcohol responsibly
and lawfully
– bar backs
• wash glasses, stock bar stations, assist
bartenders
– cocktail servers
• run cocktails from the bar to customers’ tables

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Back of House
• Is the term used to describe the part of the
operation which works out of the sight of the
public
• Includes:
– kitchen managers
– chefs
– line cooks
– dishwashers

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Kitchen Managers
• Oversee the following:
– chefs
• create recipes, prepare meals, ensure food safety
• executive chefs are highest in rank and
sometimes fill the role of kitchen manager
• sous chefs are second highest in rank
– line cooks
• work at specific stations to participate in the
preparation of meals
– dishwashers
• maintain clean, sanitary stock of dishes
and utensils 83
Food Service Management
• Varies greatly from operation to operation
– many operations have more or less managers
than described
• the key is having the correct number of people to
get the work done efficiently and effectively

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85
Assessment
1. Which of the following is NOT a responsibility of general
managers?
A. Controlling the quality of food and service
B. Promoting the business
C. Helping employees develop meaningful careers
D. Ensuring the business is profitable

2. Which of the following is the term used to describe the part of the
food service operation which directly serves customers?
A. People-oriented house
B. Over the house
C. Back of house
D. Front of house
86
Assessment
3. Busers have which of the following responsibilities?
A. Taking reservations
B. Receiving customers’ payment
C. Clearing and cleaning tables
D. Taking orders and serving food

4. Which of the following do dining room managers NOT oversee?


A. Dishwashers
B. Busers
C. Servers
D. Hosts

87
Assessment
5. The highest ranking chef is known as which of the following?
A. Sous chef
B. Line chef
C. Managing chef
D. Executive chef

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89
Final Assessment
1. The hospitality industry is considered a segment of which of the
following?
A. The business management industry
B. The consumer services industry
C. The travel and tourism industry
D. The distribution industry

2. Which of the following is an example of institutional food


service?
A. A restaurant in a suburb
B. A cafeteria in a hospital
C. A coffee shop on the beach
D. A food truck traveling around a downtown area
90
Final Assessment
3. When and where did Boulanger open a café he called a
restorante?
A. 1492 in Seville, Spain
B. 1634 in Boston, Massachusetts
C. 1650 in Oxford, England
D. 1765 in Paris, France

91
Final Assessment
4. Which of the following is true of the development of the classic
American diner?
A. They were developed between 1750 and 1780 to
encourage Europeans to visit the United States
B. They were developed in the 1800s to feed factory workers
C. They were opened in the front of grocery stores for people
who did not want to cook for themselves
D. They were opened by feminists to promote women’s
suffrage

92
Final Assessment
5. According to the presentation, Red Lobster® is which type of
restaurant?
A. Full-service causal dining
B. Full-service fine dining
C. Cafeteria
D. Quick-casual

6. Large-scale food service for events such as weddings and


corporate dinners is known as which of the following?
A. Mobile restaurants
B. Prepared food retail
C. Catering
D. Fine dining to go
93
Final Assessment
7. Darden® Restaurants owns restaurant concepts including Olive
Garden®, Red Lobster® and LongHorn Steakhouse®. Darden®
Restaurants is an example of which of the following?
A. Restaurant chain
B. Restaurant franchise
C. Independent food service operation
D. Corporate food service group

94
Final Assessment
8. How might a restaurant be considered a chain and a franchise?
A. If the operations in the U.S. are all company-owned, but
operations in other countries are owned by franchisees
B. If there are multiple restaurants using separate concepts
owned by one firm
C. If the owner sells all operations to multiple franchisees
D. If the owner of a franchise opens multiple operations of
the same restaurant

95
Final Assessment
9. Kitchen managers, chefs, cooks and dishwashers are
employees considered to be which of the following?
A. Management
B. Front of house employees
C. Entry-level employees
D. Back of house employees

10. Which of the following positions sometimes fills the role of


kitchen manager?
A. Hostess
B. Executive chef
C. Bartender
D. Sous chef
96
Resources
Foundation of Restaurant Management & Culinary Arts.
http://www.emergentlearningllc.com/images/pdfs/Restauran
tManagement_Sample.pdf
Restaurant-ing through history: The Decades.
http://restaurant-ingthroughhistory.com/tastes-of-the-
decades/
National Restaurant Association.
http://www.restaurant.org
Famous Chefs and Entrepreneurs in the Food Service
Industry. Steven F. Austin State University.
http://cte.sfasu.edu/wp-content/uploads/2012/03/Famous-
Chefs-and-Entrepreneurs-in-the-Food-Service-Industry-
PPT.pdf 97
Acknowledgements
Production Coordinator
Amy Hogan

Brand Manager
Megan O’Quinn

Graphic Designer
Megan O’Quinn

Technical Writer
Jessica Odom

V.P. of Brand Management Executive Producer


Clayton Franklin Gordon W. Davis, Ph.D.

© MMXIV
98
CEV Multimedia, Ltd.

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