Ch.7: Local Trends about Restaurant Operations

Local Trends about Restaurant Operations



Dai Pai DongThese shoddy, alfresco food stalls are a true local phenomenon, celebrated by diners for their quick and cheap, no-frills dishes. Despite their popularity, dai pai dongs are also a vastly endangered species and there are only 28 licensed stalls still operating in the city. Sham Shui Po houses most of the remaining dai pai dongs, including Cheung Fat (beef brisket noodles and pig trotters), Keung Kee (killer stir-fries) and So Kee (fluffy pork chops). A good chunk of these open-air stalls can also be found in Central, such as Sing Heung Yuen (tomato broth noodles) and the handful of recently renovated stalls that line Stanley Street.

Airplane roast goose, Maxim’s MXYung Kee may have started the trend, but Maxim’s are the ones who’ve perfected the carry-on poultry idea. Place your order at least three days in advance at any MX outlet then, on the day of your flight, pick up your ordered goose from the Maxim’s Food² at the airport. The goose is freshly roasted and is packaged to be 100 per cent travel-safe (roast goose sauce and plum sauce included). The goose is even prepped with its own boarding pass. This goose is ready to fly.

Roast pig, Wing HingCrispy, blistered skin. Succulent meat perfumed with the fragrant smell of firewood. It’s not easy to get suckling pig like that these days. Thankfully, Wing Hing’s owner Mr Li sticks by age-old tradition and insists on using firewood to roast their pork. The roasting factory (pictured, left), which has been in operation for more than 40 years, is fitted with three large underground roasting pits. Each pit measures about 2-metres deep and reaches over 200-degrees when fired up. Every morning, Li takes up a fresh batch of suckling pigs, brushes them down with molasses, and lowers them into the fiery ditch. The pigs need to be taken out, rested, and re-roasted several times. The complete process of roasting a single pig takes two to three hours and the job is much more labour intensive than with a gas or electric fire. But the results justify the hard work. Wing Hing’s traditional suckling pig is sold at their fresh meat stall in Tuen Mun, and is also offered at various roast meats specialists around town, including Luen Fat.

Ch.7: Forecasting & Food Cost Control Process

How Restaurants do their Forecasting & Food Cost Control Process



Most restaurants have an automated ordering system (POS) which can be queried for menu item counts for any given data range. This data is quite helpful for the forecasting team in restaurants using a limited menu or a menu with a central focus (either by cuisine or main ingredient). Unwieldy menus do not allow a quick menu item count forecast (using historic POS data) to effectively buy most key items.

At the core, most forecasts begin with the cover count or number of guests expected to arrive in a given time period. Adding the check average to this cover forecast will provide the people designing a shift schedule with a target. Simply take the covers times the check average times the target labor percentage. This is the budget for the period.

Food cost control is not a percentage game in the planning phase. Although most use food cost percentage to measure results, the number won't help you predict what food to order, store, prep and bring to the line for any given period. Cover counts and check averages will provide a broad target. Making the target work is a tougher task.

For many raw ingredients, the ability to use unsold product in future meal periods has a significant impact on your food cost results. Limited menus put a short list of ingredients in play every single day. They don't need to worry how to use any leftover cheese at Domino's Pizza. Pizza is on the menu tomorrow. In contrast, operators using menus relying on daily specials for a major share of sales will have a much more demanding job to use up leftover stock.

The purchasing forecast depends on par stock targets for many shelf stable items. In a typical kitchen, a much greater share of the food cost dollar is spent on perishable meat, fish and produce. The error penalty for over ordering a shelf stable condiment is minimal when compared to fresh white fleshed fish. You will often see seafood specialists with chalkboards. Late in the dinner shift on a busy night, they want to run out of fish if the next day's forecast is for a slow Sunday or Monday.

An Italian restaurant in New York does not offer fish on days when the fish market is closed (Saturday and Sunday). Some chefs pay air freight to get fresh fish in the door as fresh as possible. You want to avoid over buying any highly perishable raw ingredient. Just ask yourself a simple question: "If I order more than I can use today, will I be able to sell the leftovers tomorrow?"

Once you move away from fresh fish and poultry, dairy and produce are highly perishable and are frequently purchased by specialists. If your operation doesn't justify hiring a specialist, tracking produce waste can help you adjust your pars quickly. I favor either a two-tier or three-tier par stock model. Order more before busy days and less on slow days.

We believe using sophisticated software (with menu item counts, standard recipes, standard yields and other recipe model factors) are most useful for companies who have never explored these tools. Often, the clients would tell the companies they wish they had analyzed their menu item costs years ago.

The knowledge gained from yield analysis really improves future forecast accuracy. If you learn to translate purchase units of measure into the number of standard portions, you will have a competitive advantage. Your forecast model can now go well beyond covers, check averages and percentages.

Ch.7: One Topic - Food Cost Techniques: Orders

One Topic about Restaurant Operations - Food Cost Techniques: Orders

The number one component in your weekly or monthly food cost percentage calculation is food purchases. This figure is modified by the net inventory change before you divide by sales. Many operators tell me they don't count inventory any more. I always ask them how they order food.

In every case, food service operators go to their storage locations when determining the order requirements. This activity is an inventory count. Although there may not be a formal report or a careful valuation, the person who checked the stock room, walkin cooler or freezer performed a count. In most cases, these counts are discarded once the food order has been completed.

Do you organize your food orders by category (e.g. produce, meat, seafood, dairy, etc.), by vendor, or by storage area (e.g. freezer, cooler, dry storage, etc.)? Do you have a day of the week organization? Perhaps you order produce twice a week on Monday and Thursday. You might replenish groceries once a week for high volume items and monthly for other items. Maybe you have become aware of a special on a shelf stable item. On the other hand, prices for some high volume items may be sky high this week.

If you phone in your orders, you may be on the phone with someone trying to blowout an over stocked item. Do you change your order on the spot to "take advantage" of this limited time offer? If you answer yes, how do you determine the impact on other items you need to order? The person on the other end of the phone line has taken over your order process.

Most operators have a decent price awareness. Some are acutely aware of any market shifts in their top volume items. These same operators may have a vague idea what the market conditions are on their low volume items. Who has the time to track all this activity? Time is money.

Every operation spends a significant amount of time each week ordering, receiving and storing food items. Much of the information used in these decisions is discarded once the order has been submitted. Spot counts, market prices, last minute deals, emergency orders, short shipments, poor quality rejections, and every day customer preference shifts are processed and the impact is seen in your invoices.

Do you have a feedback mechanism built into your control system to highlight ordering issues? If you don't have any feedback other than the goods arrived, you are missing another opportunity to improve your ordering process.

Five simple recommendations:
1. Develop order guides to fit your personal environment. Document the counts, par levels, and other notes. The notes should have details on weather conditions, seasonal peaks, etc.
2. Clearly mark your orders with any changes made during the phone call with the supplier. Use a different color ink to highlight these changes.
3. Organize the price quotes faxed each week on bid comparison sheets.
4. Document all specification issues and ask for credits when the delivery does not match your request.
5. Summarize this activity each week and use the information to improve the process.

Once you order food, the economic impact of the order is reflected in your food cost percentage. It is impossible for something you never ordered to spoil, be improperly portioned, stolen, or over produced. Spend less time in the long run by investing in organizing your ordering process today.

Ch.6: Local Trends about Restaurant Business

1. Different promotion channels


      In the old days, the promotion of restaurants is usually placing advertisement on newspaper, magazines, television and word of month.  The network power is rapidly growing in the web, such as Facebook and Twitter. The restaurant will use more the internet to promote the company. Also, the cost of advertisement on the web is much lower than the newspaper or magazines. Also, promotion on the telephone apps is also a increasing trend.

2.    E-commerce of restaurant

As technology has evened the playing field, local restaurants can setup and manage social media to attract new customers and doing business. The restaurant may receive order on the web and deliver to the customers’ house. Also, potential and existing customers can see the online menus from the phone or at everywhere easily. Doing business on web is more easy and convenience for the customers. Another big trend of 2011 is the growing momentum of the "Go Local" movement. It's not about west coast or east coast; it's about my town, my neighborhood, and my food. People are not only buying locally grown or raised food for home, but they are also looking for that local support in their restaurants.

3.    Difference in menus

The customers are more and more concern about health. They are more care about where are the materials come from and they prefer more nutritionally foods. So the nutritionally foods will appear more in the menus. Also, as the customers want to know the whole ingredients of the food, the menus will contain the ingredients of the dishes.

4.    Increase in in-restaurant preparing meals

As customers concern how the food is cooked and whether the cooking process is clean enough, there will be more in-restaurant preparing restaurant. So customers can see the cooking process and increase the confidence towards the restaurant. Also, the in-restaurant preparing meals can be appealing to customers too.

 

Ch.6: Examples of Each Classification of Restaurants

Give more real life examples of each classification of restaurants

1. Independent Restaurants



Si Sun Fast Food
The owner of Si Sun claims that their restaurant may be the first restaurant selling hamburger in Hong Kong, it has no other branches.

2. Chain Restaurants



Tao Heung Restaurant
They have hot-pot restaurant and Chinese cuisine restaurant.

3. Fine Dining

Sabatini Ristorante Italiano
This fine dining restaurant offer a traditional “Roman cuisine” menu and is served in a countryside setting. The menu features seasonal specialties and is complimented by an extensive wine list.

4. Theme Restaurants

Modern Toilet

The theme of this restaurants are eating in the toilet. No matter the chairs, the containers of the food and beverages are related to toilet equipment.

5. Celebrity Restaurants

So sweet

The dessert restaurant is owned by the artists - Wong Cho Lam.

6. Steak Houses

Magic Cafe & Grill

The steak house is at middle pricing strategy. And it has set dinner and set lunch. It also have facility to hold party.

7. Family Restaurants

Dragon Restaurant

The restaurant is run by a family. The boss, who is the father responsible for cooking and the mother is responsible for the beverages bar.
8. Ethnic Restaurants

Islam Food

The restaurant serves for Islam food only, and it does not have pork dishes.

9. Quick-Service/Fast-Food Restaurants 




McDonald's

It is one of the most successfulfast food restaurant in the world. It keeps refresh its image and introduce new food. It serves high quality food with reasonable price and fast service.

10. Hamburger

Burger King

It provides a variety of hambuger and other fast food such as fried chicken and potato. The special service of burger king it can help the customers to divide the buger into a half. So they can try different favour easily.

11. Pizza

Pizza Hut

It's main dish is pizza, also it offers spaghetti and snacks for customers. It is famous of its delivery pizza in heat service.

12. Chicken

KFC is one of the most successful fast food restaurants in the world. It's slogan is "We do chicken right".

13. Sandwich

Oliver's super sandwichesThe restaurant offers a large variety of sandwiches to the customers with fresh materials.

14. Bakery Cafe

Delifrance

It provides the best-in-town bakery items and their mission is serving the fresh and french food.

15. Hong Kong Style

Capital Cafe

It has opened for a long time and it serves some retrospect food such as egg water and egg tart.

16. Seafood Restaurants

Seafood Island Seafood Restaurant

The restaurant is located in Sai Kung, which has little boat to catch seafood. The customers can buy the seafood in there or bring the seafood by themselves and give the chef in the restaurant to cook.

17.Chinese Dim Sum Restaurants

Tim Ho Wan

It is a traditional dim sum restaurant. It have dim sum have chinese tea.

19. Cha Chaan Teng (Chinese Tea Restaurants)

Australia Dairy Company

The famous food in there is egg sandwich and the Hong Kong style food such as the ordinary meal.

20. Dai Pai Dong

 

Sing Heung Yuen
The customers of dai pai dong have to sit in the outdoor area and the food is made immediately.

Ch.6: Characteristics of Chain & Independent Restaurants

Explore the different characteristics of chain and independent restaurant

         For the ownership, the chain restaurant is usually owned by the corporation. The owners, which are the shareholders, they do not usually involve in the operation of the restaurant. On the other hand, the independent restaurant is usually owned by 1 or more owners, in which they usually involve in the day-to-day operation.

For the linkage, chain restaurant is a group of restaurant owned by the same corporation alike in market, concept, design, service, food, or name. And independent restaurant is not link with any national brand or name.

For the service offered, chain restaurant offers the same menu, food quality, level of service, and similar atmosphere can be found in any one of its restaurants. Instead, independent one offers the owner independence, the owner can create their restaurant's unique style, dishes.


 

For the risk, the chain restaurant has a lower risk because of segment of location. A unsatisfactory revenue from a specific location can be covered by the other location with a high revenue. Also, the brand name of the chain restaurant is well known and provides stable promised services. So the confidence of customers to chain restaurant will be higher. But the chain restaurant has to bear a relatively high risk. As it is difficult to attract and keep the customers.

For the management, chain restaurant have less flexibility compared to independent. As the chain restaurant is globalized, the top management makes decision of the menu or the atmosphere of the restaurant. The lower level management do not have authority to change the menu or settings of the restaurant. Therefore, they are slowly to respond to the customers’ need and need more time to find the customers’ preference. For the independent restaurant, they can know the feedback of customers immediately. Also, the boss can talk to the customers easily. So they can tailor made the dishes which are suitable to different customers’ requirement.

For the financial support, chain restaurant has stronger financial support as it is from a group of restaurant. The owners, who are the stockholders, can support financially. However, the independent restaurant has relatively difficulties to finance for its expansion or operation as it has fewer owners.

Ch.5: Challenges of F&B Operations

Challenges of F&B Operations

1. Competitive Situation

• Producing quality food at the lowest possible cost is a major concern. Manufacturers are responding by identifying opportunities to improve production efficiency by using information systems that monitor operations and provide the capability to analyze results and determine the root cause of problems. The performance of assets is being improved as maintenance regimes are stepped up with improved support and better management of spare parts. And, the operations are reducing utility costs by installing information systems to monitor utility usage and identify opportunities to reduce costs.

2. Multiple and Varied Food

• We live in a mass-customized society – one where consumers want it their way, with the quality and cost levels that they have come to expect. This creates significant pressure on food and beverage manufacturers who have the difficult task of meeting the ongoing evolution of consumer demand. Today’s consumers run the gamut – from those who want healthier choices to others who want more convenient packaging and unique flavors. This increased volume and diversity of products is causing plants to design their lines based on shorter production runs with more changeovers.
• Meeting these demands requires operational flexibility. Restaurants must be able to easily add new products to the mix, change recipes on the fly and quickly implement new operational procedures. In addition, they must execute these changeovers while meeting high sanitation and environmental requirements. All of this has to be done smoothly to reduce time-to-market and limit the impact on operations.

3. Customer Satisfaction

While speed and flexibility are important, plants must also take the steps needed to ensure the highest quality possible. The key to maintaining brand loyalty, which is paramount in this industry, is product consistency — not only batch-to-batch, but facility-to-facility. To meet these consistency requirements, companies need advanced automation and information technology. This technology will help ensure that each batch and each operation is performed the same as the previous one, while simultaneously allowing operators to compensate for process changes and raw material variability that can impact the finished product.

4. Food Safety and Security

As concerns over food safety and transparency continue to grow in the minds of consumers, the restaurants are required to improve the processes that monitor quality and track material through the facility. At each critical control point of the production process, systems are being installed to monitor operations in order to verify that operations have been properly executed. Systems are being implemented to track all raw and in-process material through the entire facility to meet regulations and provide information if a product recall is required. Managers should constantly check the vulnerability of the networks, automation and information systems and implementing changes to protect your systems from intruders. Moreover, they should ensure the food is from the proper sources and up to standards.

Ch.5: Trends of F&B Operations

Trends of F&B Operations

1.Being Responsive to Customers’ Tastes & Market Demand

• In today’s global marketplace, where growth via acquisition is prominent, the key to sustained positive financial performance is the ability to understand and respond to consumer tastes and competitive pressures while reducing cost of production or operations.

2.Being Socially Responsible and Keeping Sustainability

• Restaurants want to have a positive impact on society and the environment. In addition, they want to turn sustainability challenges into business advantages. At the heart of a well-planned sustainability program is the belief that corporate investment in environmental and social responsibility must strengthen business performance to be successful. For instance, part of the revenue goes to some charitable organizations. It must reduce environmental impact, achieve genuine economy in the use of resources, deliver a return on investment, and enhance the equity of the restaurants.

3. Maintaining Customer Loyalty

• Customer loyalty is the key to the success of the business, and maintaining customer loyalty is achieved through consistently manufacturing high-quality food, membership discount, and regular coupons. In doing so, value is added to the brand. Therefore, protecting the brand loyalty is the core to financial strength, whether you are providing a local product, a high-value import, or a global mega-brand.