Book Format: This book consists of six standalone sections in the format of
an engineering handbook.
Engineers cannot possibly retain all the tools they need to ply the trade.
They must have a handy reference, so Engineers’ handbooks have the layout and
format for quick look-up.
So it is with restaurant management for knowledge and skill-sets required.
The Restaurant Handbook – Tools & Rules also packs maximum information into a
quick reference format. The writing style is brief, except for anecdotal
illustrations to relieve the severity of the bulleted lists.
You will have a unique concept, but sets of basic standards will affect
profit. We have tried to supply exhaustive sets for your consideration. You
must pick and choose what fits, in your quest to deliver value. Remember
though, the business is demand-driven rather than supply. The customer will
always tell you what they must have, so be ready and quick to adjust. Use
these lists and guidelines to grow and prosper.
Table of Contents
Section 1 START – PLAN – FINANCE – LOCATE – DESIGN
INTRODUCING TOOL & RULES
STATE OF THE INDUSTRY
CUSTOMER SATISFACTION SURVEYS
SUSTAINED COMPETITIVE ADVANTAGE
PLANNING AND ORGANIZATION
SELECTION OF GEOGRAPHIC AREA
LAND AND BUILDING
CUSTOMER AREA DESIGN
CONSTRUCTION AND REMODELING
Section 2 PRODUCT/SERVICE – QUALITY – MENU SCIENCE
QUALITY OF PRODUCT
MENU DESIGN – PHYSICAL
MENU PROFITABILITY ANALYSIS
MENU ITEM - RECIPE COSTS
MENU BREADTH AND VARIETY
MENU HEALTH AND NUTRITION
CHANGING THE MENU
YOUR TARGET MARKET
PRICING AND VOLUME
PRICING DECISION CONSIDERATIONS
COMMON SIMPLE PRICING METHODS
PSYCHOLOGICAL PRICE BARRIERS
QUALITY OF SERVICE
THE IMPATIENCE CURVE
QUALITY OF ATMOSPHERE
TOTAL QUALITY MANAGEMENT
Section 3 HUMAN RELATIONS – TEAM EXCELLENCE
MANAGER PERSONAL CHARACTERISTICS AND SKILLS
MANAGER JOB REQUIREMENTS
MANAGER PERFORMANCE EVALUATION
TIME MANAGEMENT RULES
MANAGER DAILY LOG
FLOOR MANAGER CHECKLIST
WAITSTAFF PERSONALITY CHARACTERISTICS
HIRING YOUNG PERSONS
HIRING FOR THE HOST/HOSTESS FUNCTION
ATTITUDE AND EXCELLENCE
COMPENSATION / PAY
ACCEPTANCE BY PEERS
GROWTH AND ACHIEVEMENT
STRATEGIC GOAL SETTING
INCENTIVES FOR MEETING GOALS
RESOLVING STAFF CONFLICT
CORRECTING STAFF WITH PEER REVIEW
MISSION - GOALS - POLICIES – PROCEDURES
Section 4 TRAINING
RETURN ON INVESTMENT
WHO - FACILITATOR
PRIMARY vs. SECONDARY TRAINERS
WHO - LEARNER
PLANNING & PREPARATION
MENTORING vs. TRAINING
HOW – BACK-OF-HOUSE
HOW TO TRAIN - PROCESSES
HOW – FRONT-OF-HOUSE
WHY OF EACH JOB FUNCTION
SUPPLY CHAIN – INTERNAL CUSTOMER
SPEED OF SERVICE
WHAT – FRONT-OF-HOUSE
SENSE OF PEOPLE SKILLS
CONCEPTS TO COVER AS FUNDAMENTAL
JOB FUNCTIONS – FRONT
Section 5 CONTROL – OPERATIONS
ACCOUNTING FOR DAILY OPERATIONS
POINT OF SALE CONTROLS
COST OF GOODS SOLD
INVENTORY CONTROL – SUPPLY CHAIN
LABOR COST CONTROL – PRODUCTIVITY
LABOR COST PERCENTAGE
ACCOUNTING TO GOVERNMENT
HEALTH / SANITATION / CLEANLINESS
FIRST AID – CUTS – BURNS – SLIPS
DISH WASH / CHINA POLICY
Section 6 VALUATION FOR BUY/SELL
REASONS TO KNOW THE VALUE
FAIR MARKET VALUE
CASH FLOWS DISCOUNTED
CAPITALIZATION RATE OR MULTIPLE
COST OR REPLACEMENT
HIGHEST AND BEST USE
AREA SALES COMPARISON
TECHNIQUES & TACTICS
VALUATION BY CAPITALIZATION CHECKLIST
BUILDING AND LAND
Restaurant management demands more diverse skills and knowledge than any other
type of business. Time constraints are more oppressive, and the need to react
more common. Every restaurateur will run across questions that must be
answered quickly with the least amount of guess and the greatest probability
of productive results. The course of restaurant operations covers such a
broad range of activities that no one person can be prepared for all events.
Always heed helpful advice built on long experience.
Finally here is a book that provides detailed examples of proven good
practices for almost any question that might arise, without the need to
reinvent the wheel. From planning for starting the business, to profits, to
selling the business, this Restaurant Handbook gives a guide to procedures and
methods as the ultimate reference for each aspect of operations. This book is
ideal for the experienced or beginning manager. There are clear examples on
every topic to compel informed decisions.
A wealth of checklist, charts, graphs, and practical guidelines are cross-
referenced in an easy to use format. The Restaurant Handbook offers sensible,
clear, and experienced advice. A partial list of topics is:
- Restaurant Planning, Locating, Organizing, and Financing
- Operating statement pro-formas for start up
- Menu design and management rules for maximum income
- Customer needs
- Staffing for quality, sources, training, motivating, and retaining
- Food handling and supply chain controls for quality, profitability and safety
- Controls for direct costs and overhead
- Valuation of the business for buy, sell, lease, and franchise
- Free downloads of applications software and spreadsheet formats.
You will turn to this reference often for information on any question. No
longer will you need to search for specific topics through diverse sources.
Keep this book handy in your top desk drawer.
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Evidence will show that over 50% of restaurants fail in the first year. This
dismal statistic must cease. It represents a tragic misapplication of
peoples’ energy, fortunes and lives. This failure rate is a hard and tragic
drain on the whole economy. Hindsight will show that the failures were a
result of poor decisions and poor execution. Poor execution can come from
inadequate resources, time, talent, dollars, and knowledge. But we would
never even get to poor execution if we had not already made poor decisions.
Both decisions and execution must be based on knowledge. This handbook
supplies all the tools for sound decisions and execution. The problem is:
that it takes time and energy to gain this knowledge. Time is our most
perishable resource. We will, as we go forward, detail why restaurant
operations management requires a broader range of skills and knowledge than
most any other kind if management. Time is always in short supply.
Knowledge is data driven. It takes time to capture and analyze data.
Improper analysis can give results that fly in the face of common sense.
There is a point where the time and dollar cost of additional information
outweighs the time and dollar rewards from better decisions, so we must seek
quick relevant data but not abandon common sense.
Common sense however requires this caveat. Restaurant failure can be likened
to pilot error, poor decisions and execution. Old pilots know that outside
visual cues can be impaired such as; clouds, fog, haze, flight over water or
at night and a deadly combination thereof. Tragedy comes from trusting the
seat-of-the-pants senses. Pilots learn to keep their eyes scanning across
their; airspeed, gyro horizon, compass, and altimeter. Several navigation
aides always pinpoint the pilot’s position relative to destination.
Checklists force the use of all this input to assure smooth cruising.
Restaurant operators must use similar diligence and techniques to the safe