This chapter discusses restaurant operations. It describes the front of house, back of house, and office areas. The front of house deals directly with guests, while the back of house handles receiving, storing, food production and cost control. The chapter also covers forecasting demand, increasing sales, reducing costs, and trends like more flavorful foods and increased takeout/home meal replacement. Key aspects of operations include purchasing, receiving, storing inventory, and ensuring proper portion and cost controls.

1. Chapter 8
Restaurant Operations

2. Scope & Sequence
1. Front of the House
- Definition
- Functions
- Restaurant Forecasting
- Suggestive Selling
2. Back of the House
- Definition
- Functions
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3. After Reading and Studying This
Chapter, You Should Be Able to:
Apply the forecasting technique used in the chapter to
measure expected volume of business
Name and describe the various types of services
Explain the important aspects of food production
Describe the key points in purchasing, receiving,
storing and issuing

4. 3 Areas of the Restaurant:
1.Front of the House
2.Back of the House
3.Office
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5. Front of the House
• The key responsibility of the FOH is great satisfaction
• It where the exchange of goods and services takes place
• The guest expects a friendly greeting, accuracy in order filling, cheerful
willingness to handle any problems that occur.
Tasks:
 Greeting the guest
 Taking the order
 Serving the food
 Removing used table ware
 Accepting payment and accounting for sales, charge as well as cash
 Thanking the guest and inviting comments and return business
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6. BACK OF THE HOUSE
 A term used in the restaurant business to refer to kitchen area and staff.
 The principal responsibility of BOH is the quality of the food for the
guest. Food safety is extremely important.
 Cost control, management of supplies are significant responsibilities.
 Controlling quality and cost are parallel activities.
 Standardized recipe is important (correct ingredients ensuring quality
and cost.
 Closing (cleaning up, shutting down, locking up). The closing kitchen
manager is responsible for major cleaning up. Putting valuable food and
beverage into secure storage.
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7. THE OFFICE
 The office staff handles correspondence, phone calls, office procedures.
Keeping the books.
 Cashier’s deposits, preparation of the payroll, approval of bills, bill
payments.
Restaurant Forecasting:
 Budget projections
 Guest counts or covers
Meal periods
Day of week
Special holidays
 Average guest check
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8. Making a Profit in Food Service
Operation
Increasing Sales:
2 Basic Approaches:
1. To sell more to people (advertising)
2. To sell more to your present customer (selling products more).
3. Increase the check average (to increase the price), however this is
not very effective. It may result to the lost of customers.
4. Bundling,(another strategy) ex. Combo meal
5. Suggestive selling
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9. Reducing Cost
1. Careful scheduling of employees.
2. Improve portion control
3. More careful monitoring of the issue and the use of supplies
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10. Food Cost Control Process
1. Purchasing:
- Standard for each item (product specification)
- Systems that minimize effort and maximize control of theft
and losses from other sources.
2. 2. Receiving:
- Is a point of control in the restaurant operation. The purpose
of receiving is to ensure the quantity, quality, and price are
exactly as ordered.
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11. 3. Storing/ Issuing:
- Records must be kept of all items going into and out of the
stores. If more than one person has access to the stores, it is
difficult to know where to attach responsibility in case of losses.
4. Budgeting: (2 Categories)
a. Fixed costs – are constant regardless the volume of business.(rent, interest,
depreciation)
b. Variable cost – fluctuate with the volume of business, it also includes the
controllable expenses (payroll, benefits, direct operating expense , marketing ands
promotion, energy & utility)
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12. Typical Cost Percentages
Cost Percentages
Labor costs 20 to 24%
Food costs 28 to 32%
Beverage costs 18 to 24%

13. Controls
Loss of $20 billion a year due to theft and cash
mishandling
One out of every 3 employees will steal
35% of restaurants fail due to theft
75% of missing inventory is from theft
73% of all job applications are falsified
Use of POS can solve some problems

14. Trends
More flavorful food
Increased takeout meals and home meal
replacement
Food safety and sanitation
Guests becoming more sophisticated

15. Trends in Restaurant Operations
More flavorful foods
Increase takeout meals
Increase food safety and sanitation
Twin and multi restaurant locations
Quick-service restaurants in convenience stores
Difficulty in finding good employees.

16. Summary:
1. Most restaurants forecast on a weekly and monthly basis.
2. Products need to be purchased, received, and properly stored.
3. The front of the house deals with the part having direct contact
with guests.
4. The back of the house do not come contact with guests. This
include receiving, storing/issuing, food production,
stewarding, budgeting, accounting and control.
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