Restaurants Kinds and Characteristics

Generally speaking, restaurants can be segmented into several categories:
1 - Chain or Independent (Indy) and franchise restaurants. McDonalds, Union Square Cafe, or KFC
2 - Quick Service (QSR), a sandwich. Burger, chicken, and so forth, convenience stores, pasta, pizza
3 - Fast casual. Panera Bread, Atlanta Bread Company, Au Bon Pain, and so on
4 - family. Bob Evans, Perkins, Friendly's, Steak 'n Shake, Waffle House
5 - casual. Applebee's, Hard Rock Caf'e, Chili's, TGI Friday
6 - Fine dining. Charlie Trotter's, Morton's steakhouse, Flemming's, Palm, Four Seasons
7 - Misc. Steakhouses, seafood, ethnic, dinner houses, celebrity, and so on. Of course, some restaurants are more than one category. For example, the Italian restaurant might be casual and ethnic. The leading restaurant concepts in terms of sales were tracked for years, the magazine and Restaurants
The institution.

chain or INDEPENDENT
The impression that several major quick service chains in the hospitality industry is completely dominated by the error. Chain restaurants have some advantages and some disadvantages to independent restaurants. The advantages are:

1 - Identify the market
2 - Increased advertising patch
3 - Sophisticated systems development
4 - buy discount

When franchising, various types of assistance are available. Independent restaurants are relatively easy to open. All you need is a few thousand dollars, knowledge of restaurant operations and a strong desire for
uspjeti.Prednost for independent restaurateurs that they mogu''napraviti stvar''u own sense of concept development, menus, decor, and so on. In addition to our habits and tastes change drastically, there is plenty of room for independent restaurants in particular locations. Restaurants come and go. Some independent restaurants will grow into a small chain and large companies will buy a small chain.

After a small chains show the growth and popularity, they are likely to be bought by larger companies or they will be able to obtain financing to start proširenje.Napast caterer is considered a great restaurant in the big cities and to believe that their success can be duplicated in secondary cities. Reading restaurant reviews in New York, Las Vegas, Los Angeles, Chicago, Washington, DC, San Francisco, or may give the impression that they can replicate the unusual restaurants in Des Moines, Kansas City, or The City, USA. Because of demographic and high-style and ethnic restaurants are not going to click in small cities and towns.

5 - will go to training from the bottom up and cover all areas of restaurant franchising activities include at least the financial risk in that the restaurant format, including building design, menu and marketing plans, already tested in the market. Franchise restaurants are less likely to go belly up, but independent restorana.Razlog is that the concept is proven and operating procedures are established with all (or most) of the kinks worked out. Training is provided, a marketing and management support are dostupni.Povećana probability of success does not come cheap, however.

There is franchise fees, fees, advertising, royalty, and requires significant personal net worth. For those who do not have a significant restaurant experience, franchising may be the way to the hospitality industry, provided they are willing to start at the bottom and take a crash course of training. Restaurant franchisees are entrepreneurs who like to own, operate, develop and expand an existing business concept through the form of contractual business arrangement called franchising.1 Several franchises have finished with more stores and made the big time. Of course, the most serious restaurateurs want to do their stuff, have a concept in mind and can not wait to go for it.

Here are examples of costs that are involved in franchising:

1 - Miami Subs traditional restaurant is $ 30,000 fees, fees of 4.5 percent, and requires at least five years experience as a multi-unit operators, personal / business capital of $ 1,000,000, iosobne / business
net worth of $ 5 million.

2 - Chili's requires a monthly fee based on restaurant sales performance (currently a service fee of 4 percent of monthly sales) plus greater of (a) monthly base rent or (b) the percentage of rent that is at least 8.5 percent monthly sales.

3 - McDonald's requires $ 200,000 for nonborrowed personal resources and an initial fee of $ 45,000, plus a monthly service fee based on restaurant sales performance (about 4 per cent) and rent, which is
monthly base rent or percentage of monthly sales. Equipment and preopening costs ranging from $ 461,000 to $ 788,500.

4 - Pizza Factory Express units (200-999 square feet) requires a $ 5,000 franchise fee, a fee of 5 percent, and advertising in the amount of 2 percent. Equipment costs range from $ 25,000 to $ 90,000, with a variety of costs $ 3,200 to $ 9,000 and the opening inventory of $ 6,000.

5 - Earl of Sandwich has an opportunity for a unit with a net worth requirement of $ 750,000 and liquidity of $ 300,000 for five units, the net worth of $ 1 million and liquidity of $ 500,000 is needed for 10 units, net value
from $ 2 million and liquidity of 800,000 dolara.Franšize is $ 25,000 per location, and fee is 6 percent.

What do you get all this money? Franchisors will provide:

1 - Help with site selection and review of any proposed site
2 - Assisting in drafting and preparing the building
3 - Assistance in preparation for opening
4 - Training managers and staff
5 - Planning and implementation of pre-opening marketing strategies
6 - Unit visits and ongoing operational advice

There are hundreds of restaurant franchise concepts, and they are not without rizika.Restoran owned or leased by a franchise can succeed even though part of the famous chain that is very successful. Franchisers and uspjeti.Slučaj in point is the highly touted Boston Market, which is headquartered in Golden, Colorado. In 1993, when the company first offered shares to the public at $ 20 per share, which was eagerly purchased, the price increases to a level of $ 50 per share. In 1999, after the company declared bankruptcy, share prices sank to 75 centi.Sadržaj many of its stores are auctioned off
part of their cost.7 Fortunes were lost. One group that did not lose the investment bankers who put together and sold the shares offered and received a sizable fee for his services.

nude group is also good, they were able to sell their shares and the shares are high. Quick-service food chains as well known as Hardee and Carl Jr. also went through a period of red ink. Both companies are now under one owner called CKE, experienced a period as four years when real wages, as a company, were negative. (Individual stores, the company owned or franchised, however, May and have done during down periods.) There is no guarantee that a franchise chain will prosper.

At one point mid-1970, & W Restaurants, Inc., of Farmington Hills, Michigan, he is 2,400 units. In 1995, the chain numbered little more than 600 After the purchase of the same year, the chain expanded to 400 stores. Some of the expansion took place in nontraditional locations, such as kiosks, truck stops, colleges and convenience stores, where a full-service restaurant experience is not važno.Koncept restaurants can do well in one region but not in drugoj.Stil work may be highly compatible with the personality of an operator, not the other.

Most franchise operations call for a lot of hard work and long hours, which many people perceive as strenuous. If the franchisor does not have enough capital and rental of buildings or land, there is a risk of paying more for rent than the business can support. Relationships between franchisers and franchisees are often strained, even the largest companies. The objectives of each are usually different; franchisers want the maximum benefit, while the franchisees want the maximum support in marketing and franchise services such as employee training. From time to time, franchise chains to get involved in a dispute with their franchisor.

As a franchise company set up a hundredth franchises across America, some regions are saturated: more franchised units are constructed from the surface can support. Current franchise holders complain that adding more concession only serves to reduce the sales of existing stores. Pizza Hut, for example, stopped selling
franchises, in addition to well-heeled buyers who can take the number of units. Foreign markets represent a major source of income for some quick service chains. As might be expected, McDonalds is a leader in overseas expansion, with units in 119 countries.

With its approximately 30,000 restaurants serving 50 million customers a day, about half the company's profits come from outside the United Država.Niz other quick-service chains also have a large number of franchised units abroad.While beginning caterer rightly focused on success here and now, a lot of bright, ambitious, energetic, and restaurateurs are thinking about future opportunities abroad. Once the concept is established, the entrepreneur can sell the license, or a lot of guidance, take the form of internationally through the franchise. (It is folly to build or buy in a foreign country without a partner who is financially secure and well-versed in local laws and culture .).

McDonald's success story in the United States and abroad illustrates the importance of local adaptation uvjetima.Tvrtka unit opens and closes the place is probably one that does not work well. Abroad, the menus are tailored to suit local customs. In Indonesia, the crisis, for example, french fries that had to be imported are off the menu, and the rice is replaced. Reading the life stories of the great franchise winners May we suggest that a franchise is well established, so it is clear sailing. Thomas Monaghan, founder of Domino Pizza, tells a different story. At one point, the chain has collected a debt of $ 500 million. Monaghan, a devout Catholic, said that he had changed his life renouncing his greatest sin, pride, and rededicating their život''Bogu, families, and pizza .''

meeting with Pope John Paul II changed his life and his sense of good and evil kao''osobni and durable.''Fortunately, in the case of Mr. Monaghan, rededication worked well. There are 7096 Domino Pizza outlets worldwide, with sales of approximately $ 3.78 billion a year. Monaghan sold most of its interest in the companies reported $ 1 billion and announced that he would use his wealth further the cause of the Catholic Church. In the recent past, most food-service millionaires are franchisers, but many would-be restaurateurs, particularly those enrolled in university degree courses in hotel and restaurant management, are not very excited about the quick service franchise.

They prefer owning or managing full-service restaurant. Prospective franchisees should review their food experiences and their access to money and decide what franchise would be appropriate for them. If you have little or no experience of food, they might consider starting your career in restaurant franchise is cheaper, which provides start-up training. For those with some experience who want a proven concept, a friendly chain, which began franchising in 1999, can be a good izbor.Lanac has more than 700 jedinica.Restorani consider the family dining room and have an ice cream specialties, sandwiches, soups, meals and quickservice.

let's emphasize this point again: Working in a restaurant you enjoy and you might like to compete in your restaurant. If you have enough experience and money, you can strike out on their own. Better yet, work in a restaurant where a successful partnership or proprietorship might be possible, or where the owner is thinking about retiring for tax or other reasons, may be willing to take payments over time.
Franchisees are, in fact, entrepreneurs, many of which were created chains within chains.

McDonald had the highest system-level sales quick service chain, followed by Burger King. Wendy's, Taco Bell, Pizza Hut and KFC came next. Metro, as one among hundreds of franchisers, received total sales of $ 3.9 billion. There is no doubt that 10 years from now, the list of companies with the highest sales will be different. Some of the current leaders will experience sales declines, and some will be merged with or purchased by other companies-some of which may be financial giants have not previously been involved in the hospitality industry.