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There are a variety of reasons to go into the restaurant business, and this document provides many reasons as to why you should.
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Chapter 1 Notes: Introduction Introduction Dining out is a social activity Successful restaurants offer a return of investment Concept determines talents required No substitute for experience Reasons for Going into the Restaurant Business Money Potential for buyout Place to socialize Changing work environment Challenge Habit Fun lifestyle Too much time on your hands Opportunity to express yourself History of Eating Out 1700 BCE taverns 512 BCE Ancient Egypt public dining place 70 AD Herculaneum, Rome 1200 London cooking houses 1550 Constantinople café 1650 Oxford coffee house French Culinary History 1767: Boulanger, father of the modern restaurant o Sold soups restoratives 1782: Grand Tavern de Londres 1785: Aux Trois Frères Provençaux 1794: French Revolution Birth of Restaurants in America 1634: Coles Ordinary, Boston, Massachusetts 1783: John Adams Tavern 1826: Union Oyster House, Boston, Massachusetts 1848-1900: New York City o Sweeney’s “Sixpenny Eating House” o Brown’s o Katz’s Deli American Style Restaurants Delmonico’s 1919: 42,600 restaurants in America Continued expansion Fast Food Restaurants
Following WWII o Rapid development of hotels and coffee shops 1960s and 1970s o Emergence of chains Challenges Long hours: excessive fatigue, lack of quality time with family Little security of managers Possibility of losing investments and investors o Failing economy o Lack of customer spending Restaurant operators and staff must: Enjoy serving people Handle frustration easily Be tireless Have lots of energy and stamina Be able to withstand pressure Be outgoing Have knowledge of food Challenges Many fail due to family problems Results of Dr. Parsa’s study: o Highest failure rate during first year: 26% o Second year: 19% o Third year: 14% o Three-year period failure rate: 59% Options Buy an existing restaurant, operate as it is, or change its concept Build a new restaurant and operate it Purchase a franchise and operate the franchise restaurant Manage a restaurant for someone else Advantages and Disadvantages High rewards if successful Individuals should assess temperament, ambition, ability to cope with frustrations, different risks Starting from Scratch Would-be restaurant operators Turnover rate is high Business is highly competitive Culinary training programs Economic troubles Lead to bankruptcy filings o Costs are up, sales are down