RESTAURENT OPERATIONS

MANAGEMENT

H.A.N.AMARASINGHE

2nd YEAR 4th SEMESTER

DEH/HNDTHM/F/E/2012/403

CHALLENGES IN RESTAURENTMANAGEMENT

Challenges InRestaurantManagement

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CONTENT

Introduction 3

What is a restaurant? 4-5

Restaurant management 6-7

Challenges in restaurant 8-10

Conclusions 11

References 12

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INTRODUCTION

Managing a restaurant is perhaps a bit more difficult than managing a bookstore or a car showroom. Restaurant deals with food and people. It is critical combination because most people are very sensitive about their food. They like eating, they like eating well. But, the other people that a restaurantbusiness deals with, one that is involved in the making and presenting of the food consumed by the first lot of people, are the employees of the restaurant. Management in restaurant business is not an easy task. So in this assignment talking about Challenges in Restaurant Management.

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What is a restaurant?

Wikipedia says restaurant is a business establishment which prepares and serves food and drink to customers in return for money, either paid before the meal, after the meal, or with a running tab.

For thousands of years, from cave to castle, people ate at home. Travelers usually took their meals at inns along the wayside; laborers could snatch a bite at taverns or pubs with their pints. In the mid-18th century, soup shops sprang up in Paris selling bowls of “restaurant,” a restorative concoction of hearty beef broth. That’s the direct ancestor of the word restaurant present participle of the French restorer, “to restore” – a place where we are restored to strength and vigorby refueling, as it were, with food.

The first restaurant the conforms to our present notion of a restaurant an establishment with set hours where people or groups sit at separate tables, order from a menu and have foodbrought to them individually – was established in Paris in 1782 by an entrepreneur and chef named Antoine Beauvilliers. The concept spread through Europe and into England and then toAmerica.

Restaurants can be categorize to four parts ..

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Upscale Upscale Restaurants are restaurants that tend to have fewer people instead high prices. There to be white tablecloths, high quality alcohol, innovative recipes unlikely to be cookedat home, and an emphasis on the presentation of the food. It’smainly cater VIP needs.

Casual serviceA casual-service restaurant is a sit-down property offering alcoholic beverages that markets to singles, couples, and businesspersons with a check average lower than that of an upscale restaurant and higher than that of a family- or quick-service restaurant.

Family serviceFactors include a significant emphasis on comfort foods, a child-friendly dining environment, relatively fast table service, and a relatively extensive menu with lower prices than in midscale restaurants. Some properties offer buffet service only.

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Restaurent

Upscale Casual service

Family service

Quick service

Quick serviceIt is also known as fast food restaurants. it is specific type of restaurant characterized both by its fast food cuisineand by minimal table service. Food served in fast food restaurants typically caters to a "meat-sweet diet" and is offered from a limited menu; is cooked in bulk in advance and kept hot; is finished and packaged to order; and is usually available ready to take away, though seating may be provided.

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Restaurant’s management

We can divide a restaurant’s management in to three parts those are:

Administration Front-of-the House management Back-of-the House management

On those sections there are responsible peoples for each one. All the process going under this three management groups in a restaurant.

Administration

The Owner is the person responsible for the business in general.

The General Manager or Operations is the person who operates the restaurant for the owner.

The Assistant Manager or Administrative Assistant manages the office and business aspect of the restaurant, is responsible for Human Resources, financial and taxation documentation, andall record management.

Front-of-the House management

The Maitre d'Hôtel is entirely responsible for all front-of-the-house operations, manages staff who give services to customers and allocate the duties of opening and closing restaurant. He is responsible for making sure his or her staffis following the service standards and health and safety regulations. He is the most important person in the front-of-the-house environment, since it is up to him or her to motivate the staff and give them job satisfaction. He looks after and guides the personal well-being of the staff, since it makes the work force stronger and more profitable, and works with other executive management officers such as the Executive Chef, and the Owner.

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The Beverage Manager is responsible for all the beverage, beverage service and bar operations of the restaurant. He reports directly to the Maitre d'Hôtel (Manager). Beverage managers order bar inventory, maintain and track inventory, issue bar stock, and schedule bar service personnel. Often a bar manager will have prior experience as a bartender. Often, a beverage manager will have extensive knowledge of beverages that include wine, beer, and spirits.

BACK-OF-THE HOUSE MANAGEMENT

The Executive Chef usually operates in corporate restaurant companies. He is responsible for all back-of-the-house operations, and works with other executive management officers.

The Chef de Cuisine manages the kitchen staff working in the kitchen and creates the menus in absence of the Executive Chef.

The kitchen is often referred to as the heart of the restaurant . They create the menu and "specials" as well as order the products needed for the menu recipes. Managing the kitchen staff helps to control food timing, quality, and cost.Kitchen management involves most importantly, cost control andbudgeting.

The Sous Chef oversees the daily kitchen operations. He also acts as the Chef de Cuisine when that individual is not in therestaurant.

The Head Cook is the Head Preparation Chef who supervises foodpreparation (prep).

The Head Station Chef (or Head/Lead Line Chef/Cook) supervisesthe cooking or "work" of your menu order and the "push" to ensure your entire table will receive their order at the same time.

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Challenges in restaurant management

Hospitality is the act of kindness in welcoming and looking after the basic needs of guests or strangers. It is one of theworld largest industries. Restaurant is also a part of hospitality industry. The hospitality industry is first and foremost a people-business which requires a large pool of labour. The consequences of current and future restaurant

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development in the region will therefore result in an increasingly fierce competition for skills.

Lack of employees

Restaurants therefore are divided in different work segments, with managers in each segment. Classifying the whole work teamin smaller groups make it easy to manage them. The number of workers in a restaurant depends on the size of the restaurant.The whole management of the restaurant is run by a number of managers. The number of these managers also depends on the size of the restaurant and the number of employees. There are lot of challenges that faces restaurant management the major challenge is finding employees because of trained skill persons are lack to find in Sri Lanka. Because of lot of peoples not knowing that this industries advantages and pool of jobs have. It is major concern that restaurant management faces. The Sri Lankan population has been steady in recent years, with 25% under the age of 14, and over 40% below the age of 30’s. on the face of it, therefore there should be sufficient domestic labor available to meet the rising demand for employment. But the problem is labor migration a particular phenomenon not only in Sri lnaka but other parts of south Asia, over 250,000 srilankans move abroad each year for work, with nearly two mollion out of the country at any one time. This represent some 24% of the countries total labor force.

High Turnover Rate

According to Chron, the hospitality industry, more specifically the restaurant industry, has a 60 percent turnover rate, so restaurant managers are required to train new employees every year. This causes ongoing stress related to having to retrain new staff in times where there's a not enough experienced staff to cover the restaurant.

Competition in the market

The restaurant industry is highly competitive with respect to price, value and promotions, service, location, and food quality.  There are a substantial number of restaurant

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operations that compete with us for customer traffic, some of which have significantly greater resources to aggressively market to consumers, which could result in our concepts losingmarket share.  Consumers are highly focused on value and if other restaurants are able to promote and deliver a higher degree of value, our guest traffic levels may suffer, impacting revenues.  In addition, with improving product offerings at quick-service restaurants and grocery stores, coupled with the present state of the economy, consumers may choose to trade down to these alternatives, which could also negatively affect revenues.

 

Food Hygiene

Food hygiene is must thing in a restaurant because of there isnot food hygiene in restaurant it can’t survives in the industry, it will destroy immediately. The Centers for DiseaseControl and Prevention (CDC) estimate that approximately 76 million cases of foodborne illness result in 325,000 hospitalizations and 5,000 deaths annually. The yearly cost oflost productivity alone is estimated at between $20 and $40 billion in the U.S. so it is like same as the Sri Lanka numbers should vary but it’s happening same in Sri Lanka. So restaurant management has duty to keep food hygiene properly in their restaurant. So they have to follow standers in the food safety and HACCP system as well. They have to keep foods freshly and healthy and use standard equipment’s also to prevent those food born illnesses.

Food Processing, Storing, Serving

Those are critical parts in a restaurant because of when any mistakes happen in this process whole restaurant demand can fall down. The major problem is that in food processing is restaurant haven’t enough delivery facilities they have to hire vehicles to deliver raw food materials. So they have to purchase lot of food in once then they can lower their delivery cost. Another problem is storing facilities have law in restaurant they have challenge to storing foods. They have

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to have enough dry and cold storage facilities. If not have enough facilities to store they can’t properly maintain PAR system. If they can’t to manage PAR system properly they are face more problems. Maintaining sensible par levels means restaurant always have what they need on hand and NEVER buy at the last minute, whichsaves money. When management can wait to purchase until it’s on sale or have a coupon or BOTH, that’s serious money saving!. First and most obviously, restaurant avoid the inconvenience of running out of items. Don’t hate it when restaurant’s favorite place runs out of favorite menu item? Second, it helps control food costs. If run out of something restaurant really need, a trip to the grocery store to buy it means paying retail price, which is more than supplier charges. Third, par levels ensure that aren’t keeping too muchstock, helping to manage finances and declutter life. Finally,maintaining appropriate par levels prevents from wasting valuable storage space that need for other things. Management can see how important par levels are to a restaurant’s successand if they work there, they’ll work for restaurant too.

Food Presentation

The major challenge in food presentation is that lack of employees experience and English knowledge. So in food presentation employees have to have good experience because infood presentation customer get idea what is this restaurant and quality foods they have in restaurant. The way of presenting they can get customer goodwill and satisfaction. That’s why it’s challenge to management. Employee must have the talent to attract the customer by presenting method. So, management have to train their staff properly. They have to build their employees English knowledge as well.

Menu planning

Menu planning is another challenge to restaurant management because of there are lot of competitors in the industry. So they have to plan competitive menus. They have to have specialized menu to that restaurant then the customers attractto that restaurant. Example of that the restaurant pillaws located in Bambalapitiya is specialized for cheese kottu. So

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guests attract t to that restaurant for get and eat cheese kottu to that restaurant. So they have to have unique specialized menus. Then customers will attract to that restaurant.

Complaint Handling

Complaint handling is another challenge that restaurant management faces. Because of restaurant management always haveto take customers party. But also they have to look after their employees as well so it is most sensitive part that restaurant management faces.They have not to argue with customers in bad way. Always try to keep calm in complaint handling. They cant use harassment words when complaint handling. Always remember to get customerside. You may or may not believe the customer is always right but the customer is always the customer. They pay the bills and provide your income. Right or wrong they deserve to have you listen patiently to what they have to say. Regardless of how the customer acts, short of physical violence there is no excuse for behaving in a less than courteous manner. In a great majority of situations a customer will be satisfied justknowing that you care enough to take an active interest in what they are saying.

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Conclusions

Conduct employer training programs.

Maintain PAR system always.

Always use HACCP.

Make employees happy.

Introduce new menus.

Manage Costs Effectively.

Manage Product Quality.

Motivate the Team.

Create a Positive Work Environment.

Discipline Consistently.

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References

Start and run a successful restaurant Turn your dream in to a reality Brim Cooper, Brain Floody and Gina menellShri Krishna Printer 2002

The Encyclopedia of restaurant training Lora Arduser and Donglas Robert BrownAtlantic publishing group, Ocala 2005

Hotel Restaurant and travel lawM.C.MettiAnmol publicationsNew Delhi, 2008

Hotel, Restaurant and Travel law A preventive Approach Seventh editionKaren L.Morris, Normen G.Cownoyer, Anthony G.Mershall

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USA 2008

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